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Tesla Chooses Nevada as Site for Gigafactory

Motor Trend logo Motor Trend 9/4/2014 Alex Nishimoto
2014 Tesla Model S© Provided by MotorTrend 2014 Tesla Model S

Tesla announced today that Nevada has been selected as the site for its Gigafactory battery facility. The Silver State beat out Texas, Arizona, New Mexico, and California for the project, which Nevada governor Brian Sandoval says will bring nearly $100 billion in economic impact to the region over the next 20 years.

In late July, Tesla finalized its partnership with Panasonic, which will provide the manufacturing equipment and cylindrical lithium-ion cells needed to build the battery packs. Tesla was in charge of securing the land, and will invest $5 billion in the site and manage the factory once it's up and running. The Gigafactory's purpose is to streamline production of battery packs and bring down their cost, and subsequently the cost of electric cars. Tesla CEO Elon Musk has said the plant will be vital to the success of the Model 3, the brand's upcoming lower-priced EV sedan. The Tesla Model S and Model X SUV, due later this year, will also benefit from the Gigafactory eventually, as the plant is expected to cut battery pack costs by at least 30 percent.

This may not be the only site Tesla develops. The automaker said in April that it plans to break ground on two sites just in case there are any unforeseen delays. The Nevada site will eventually employ as many as 6500 people.

Source: Tesla


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