Tesla picks Nevada for Gigafactory

Tesla picks Nevada as the official site for its $5 billion lithium ion battery factory known as the Gigafactory, which is planned to be operational by 2020. According to Governor Brian Sandoval, the investment will have a $100 billion impact over the next two decades for his state.

For several months Tesla has been checking out possible sites in Texas, Nevada, New Mexico, California and Arizona. Competition between the five states to become the chosen one has been fierce.

Nevada’s Legislature now has to approve a bill that will allow Tesla to receive up to $1.295 billion – $195 in tax credits and up to $1 billion in tax abatements (tax reductions).

Below are Tesla’s Gigafactory projected figures:

  • 2020 Tesla Vehicle Volume: c. 500,000 per year,
  • 2020 Cell Output: 35 GWh per year,
  • Pack Output: 50 GWh per year,
  • Space Requirement: up to 10mft2 w/ 1-2 levels,
  • Total Land (acres): 500-1,000,
  • Employees: c. 6,500.

Huge manufacturing jobs boost for Nevada

Apart from the massive boost in manufacturing employment – 6,500 jobs in the Gigafactory plus thousands more in future supplier businesses – Nevada also estimates that over the next two decades it will receive $1.9 billion in tax revenue.

Tesla Gigafactory
The Tesla Gigafactory represents a huge jobs boost for Nevada.

According to the Bureau of Labor Statistics, manufacturing currently only employs 4% of Nevada’s workforce, compared to the leisure and hospitality industry, which employs over 25%.

The deal means Nevada will significantly expand its manufacturing employment base.

Nevada was particularly badly hit by the global crisis and Great Recession that followed.

Tesla says the Gigafactory will produce more lithium-ion batteries than all the other plants globally combined.

Governor Sandoval said:

“I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead.”

Elon Must, Chairman and CEO of Tesla Motors, said the Gigafactory is a key step in pushing forward the cause of sustainable transportation. “It will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” he added.

Tesla-Panasonic partnership

At the beginning of August, Tesla and Panasonic announced that Tesla will provide the premises and utilities, i.e. the Gigafactory, while Panasonic will make and supply cylindrical lithium-ion cells and invest in related equipment and machinery.

Tesla will then take the cells and other related components and assemble the batteries and packs.

Tesla will continue buying battery cells produced at Panasonic’s factories in Japan in order to make sure it meets expected demand.

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