Apple (AAPL) - Get Report plans to use Tesla (TSLA) - Get Report battery packs for a large-scale solar energy and battery storage project at a Northern California farm that eventually will help power the iPhone maker's headquarters.
The Verge reported Wednesday that Cupertino-based Apple will tap Tesla’s battery packs and related technology as part of a solar farm project it spearheaded in 2015 to help power the company’s main campus.
The setup, which was approved by the Monterey County Board of Supervisors in 2020, will consist of 85 Tesla lithium-ion “megapacks” and store up to 240 megawatt-hours of energy, according to the Verge, citing an email from Monterey County’s planning chief.
Apple said in a statement that the “California Flats” project will be “one of the largest battery projects in the country,” and will support its solar farm that generates 130-megawatt hours and supplies all of Apple's renewable energy in California. It didn't mention Tesla.
Apple added Wednesday that more than 110 of its manufacturing partners around the world are moving to 100% renewable energy for production. The iPhone maker last July pledged to be 100% carbon neutral by 2030.
In Tesla's case, investors have been more focused on its car production and output vs. its battery production efforts. The automaker is expected to have delivered 174,000 new cars in the first three months of 2021, well above what it churned out a year ago but short of what it produced and sold in the fourth quarter.
Tesla Daily’s Rob Maurer reported earlier this week that Tesla was applying for approval to build a battery cell factory in Berlin, part of the company’s ongoing push to own its own energy generating ecosystem.
Meantime, President Joe Biden on Wednesday rolled out his administration's $2.25 infrastructure plan, which includes a bevy of "green energy" initiatives including transitioning the country's electricity grid to renewable energy sources, and creating a nation-wide electric-vehicle charging network.
Shares of Apple were up 1.04% at $123.42, while Tesla shares were up 2.64% at $685.55.