Tesla’s High Demand Causing Global Battery Shortage?

Tesla Model 3 2

Tesla reportedly causing global shortage of cylindrical batteries while ramping up Model 3 sedan’s production

Tesla is reportedly causing a worldwide battery shortage as the American electric vehicle manufacturer is ramping up its Model 3 sedan production in the brand’s Gigafactory. Tesla currently purchases a huge number of its cylindrical batteries for the EVs from Panasonic’s Japanese battery supplies. With this, other companies like Samsung, LG, Murata are facing shortage of the battery cells.

In this scenario, the global tech brands like Samsung and LG are afraid that such a battery shortage could affect their business around the world as shortage of battery means they won’t be able to keep up with huge demand. As it appears, purchasing cylindrical batteries within Japan has become very difficult.


Also read: Model X Electric SUV Is The First Tesla To Land In India

Even Panasonic too has notified the companies that it is not going to sell cylindrical batteries anymore. So far, several companies are facing trouble due to the shortage of batteries that is created by high demand from Tesla. While Tesla planned to become self sufficient in making the batteries for its electric vehicles, remote location of the Gigafactory and its dependency on renewable energy is the reason behind the production delays.

As we reported earlier, Tesla is highly emphasising on its Model 3 sedan to boost the overall sales and grab bigger market share in USA. Not only that, the American EV maker is also betting big on the Model 3 sedan to expand its business around the world. Interestingly, this is the first car Tesla has announced to launch officially in the Indian market.


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In order to achieve the above mentioned goals, Tesla is focusing on ramping up production of the car and thus the battery shortage problem has been created. The company has already wasted precious time in bringing the Model 3 in market and now it aims to cover up that loss with increased production.

Speaking about Tesla’s India venture, the automaker was supposed to set up a local plant here. But, as we reported earlier, it has bypassed our country and decided to set up the plant in China. This facility will help the brand in reaching several Asian markets as it will act as the Asian production hub.
Source: ET News