Tesla Motors Inc. plans to sell about $3 billion worth of batteries, starting in the third quarter, the company said Monday.
The $3-billion loan, made with a $5 billion equity financing, will be used to finance the purchase of about 100 million lithium-ion battery cells.
It is the first major bank-backed financing to go to Tesla in about a decade, according to Tesla spokeswoman Tami Luhnow.
The loan, which was first announced in August, also will help cover the cost of a $3 million payment to the battery manufacturer Panasonic Corp., which has committed to buy batteries from Tesla for $1.2 billion.
The battery makers will buy all the battery cells from Tesla.
The battery loan is Tesla’s largest, and its first.
It will help pay for the production of batteries in an effort to reduce the company’s reliance on batteries, Luhthen said.
Tesla said it will sell about 10 million lithium ion batteries a year for the next five years, which is roughly the same number as last year.
Tesla has also said it is buying batteries from other automakers to increase production.
Luhnow said that while the $3bn loan will be financed with debt, the loan will not come close to covering the cost.
Tesla will have to buy back some of its existing batteries, she said.
“We will use the funds to reduce our reliance on lithium-based batteries, so we can accelerate production,” Luhoff said.
She said the loan is the second of two Tesla loans the company has made.
In August, the government approved $2.3 billion in financing to support the company.