Tesla’s battery project, a $1 billion venture that aims to eventually make batteries that last at least five times longer than the battery technology used to power the company’s electric vehicles, is about for a major jump in funding.
Tesla’s $3.6 billion battery-storage project, dubbed Model 3, is expected to raise at least $1.8 billion in new capital, according to an investor presentation.
The financing is part of a broader $3 billion financing package for Tesla, including $2 billion in capital from China’s sovereign wealth fund and $300 million from investors including Chinese billionaire Wang Jianlin and Russian oligarch Mikhail Prokhorov, according the presentation.
While that would put the total $1bn funding for the battery project at $1,300 billion, that figure doesn’t include additional financing commitments from China, which is investing at least another $200 million in the project, according its investment strategy document.
The new funding, which was announced Monday, would come from the Shanghai International Infrastructure Investment Fund, according China’s central bank.
Tesla’s Model 3 is currently being developed at a factory in Fremont, Calif.
The Tesla investment team said it was also looking to raise additional capital from other sources.
The company, which makes the Model S, is trying to build a battery that can last at most 50 percent longer than that of the battery used in its electric vehicles.
In the past, Tesla has used lithium-ion batteries, which are more efficient and lighter than other battery technologies.
It has said it is trying a battery-electric vehicle in 2021, but no timeframe has been set for when that will happen.
The Model 3 battery would be made of lithium-polymer, a highly conductive material.
Tesla has said that the battery could last as long as 100,000 miles on a single charge, and that it could have a range of 300 miles on battery charge.
That would be enough to run a fully charged Model S from California to Florida.
Tesla is planning to begin shipping its first Model 3 vehicle in 2020, with a price tag of $35,000, and said it expects the first vehicles to be sold in late 2020.
Tesla also has a battery manufacturing plant in Fremantont, but it has not announced its plans for that facility, and Tesla did not immediately respond to requests for comment from CNBC.