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Tesla Gigafactory reaches 20GWh annual production

by Justin King

The single factory produces more kWh of batteries than all other automakers combined.

As Tesla investors pay close attention to Model 3 production in Fremont, the company has announced that its Gigafactory 1 has reached an output milestone of 20 gigawatt-hours annually.

"At the end of July, Gigafactory 1 battery production reached an annualized run rate of roughly 20 GWh, making it the highest-volume battery plant in the world by a significant margin," the company wrote in its recent letter to investors. "Consequently, Tesla currently produces more batteries in terms of kWh than all other carmakers combined."

Reducing battery costs per kWh has been critical to Tesla's profitability plan, starting with the $112,000 Roadster and leading to the mass-market Model 3. The company has said the Gigafactory will help reduce costs of its electric vehicle batteries and Powerwall/Powerpack products by 30 percent.

Tesla and partner Panasonic are far from done scaling up battery production at the Gigafactory 1. The companies expect to continue ramping up battery cell output to more than 100 GWh and assemble 150 GWh of battery packs annually.

The company plans to build several Gigafactories across the globe to support further growth in EV sales and home solar energy storage.