This project can be implemented in collaboration with Muska's The Boring Company.
Electric vehicles need large batteries and that means a large amount of material for production. Batteries are the foundation and one of the most expensive items in an electric car. That is why Tesla has built its own Gigafactory factory, which produces more batteries than other similar plants in the world. But Tesla wants to go further.
Elon Musk announces that Tesla is considering having mining materials needed and will not only depend on external suppliers. The reason is speed and certainty that there will be enough material available. As such, Tesla will collect most of the production process below it, which will enable it to cut costs or increase margins in the long run.
Tesla Managing Director Elon Musk also owns the underground mining company The Boring Company. This can also accelerate the potential for creating new mines for certain materials.
Tesla optimizes the production of electric vehicles by making it very close to the production of vehicles and batteries. The company plans to deploy several Gigafactory throughout the world, at least once on every continent.
Gigafactory 2 is currently located in New York and specializes in solar panels. Gigafactory 3 has been built in Shanghai, China, where the Model 3 and Y models will be produced simultaneously. The company is currently choosing locations for other factories in Europe.