Tesla has applied for regulatory clearance to expand their Shanghai plant and start producing pouch-type battery cells in small numbers.

The potential expansion will give the Shanghai Gigafactory more capacity to produce 1.75 million powertrain units every year. Currently, the gigafactory is making 1.25 million.

It is unclear whether Tesla is committed to expanding or only seeking approval for potential future capacity.

Tesla is also seeking clearance to produce pouch-type battery cells, in which a trial production line would have an initial yearly capacity to make 20,000 amp hours of cells. It is also unclear how the automaker would use the pouch cells, according to Reuters.

What are Pouch Cells

These pouch cells are used in consumer electronics, which are different from the cells the automaker uses for electric vehicles. The battery components are housed in a more flexible metal bag instead of a rigid cylinder.

Pouch cells are also known for having a higher energy density and being lighter weight, making them potentially more efficient for electric vehicles. However, it remains to be seen how Tesla plans to implement pouch cells in their cars.

SHANGHAI,CHINA - MARCH 29: An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China. Tesla Shanghai Gigafactory is reportedly producing vehicles at a rate of about 450,000 cars per year.by Xiaolu Chu/Getty Images)

Tesla's move to explore the production of pouch-type battery cells aligns with its goal of continuously improving and innovating its electric vehicle technology.

Tesla could improve overall performance and extend driving range by incorporating these lighter, more energy-dense batteries into their cars.

Furthermore, using pouch cells also has potential implications for cost savings. These batteries are typically cheaper to produce than cylindrical ones because they require less material and are easier to manufacture at scale.

It should be noted that other automakers have already begun experimenting with pouch cell technology in electric vehicles.

For example, Hyundai recently released an all-electric SUV that uses a 64-kWh lithium-ion polymer battery pack of prismatic-shaped cells (similar in shape to pouches).

Read also: Tesla Caught Fire Twice After Crashing Into A Building; Witness Shares Shocking Incident

Why Pouch Cells?

As competition heats up within the EV market, it will become increasingly important for Tesla to stay ahead by exploring new technologies like this one.

In addition to the potential benefits of increased energy density, lighter weight, and cost savings, pouch-type battery cells also offer greater flexibility in design.

With cylindrical batteries, automakers have less freedom regarding placement within a car's chassis. Pouch cells are more easily shaped and can be arranged in different configurations for optimal space utilization.

Another advantage of pouch cell technology is its safety features. The flexible packaging allows for better thermal management during charging and discharging cycles, reducing the risk of overheating or explosion.

While Tesla has yet to release any official statements regarding their plans for implementing pouch-type batteries into their cars, rumors suggest that they may be working on developing these new power sources at their Gigafactory facility in Nevada.

As electric vehicle adoption continues to grow globally, along with increasing pressure from governments worldwide pushing towards cleaner transportation options, innovation will become even more critical than ever before. It remains essential that companies like Tesla continue exploring cutting-edge technologies such as this one if they want to remain ahead of the curve amidst fierce competition within the EV market.

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