Tesla Motors is betting big on Nevada, where it will reportedly house its Gigafactory large-scale battery manufacturing plant.
According to the AP, which cited a person familiar with Tesla’s plans, the Gigafactory will be housed just outside of Reno.
The $5 billion factory is expected to employ 6,500 workers and produce 500,000 lithium-ion battery cells annually over the next six years, the AP said.
However, Tesla is hedging its bet and will prep a second location just in case Nevada does not provide the incentives it promised Tesla for building its factory in the state, according to the AP.
“Discussions with the other states in the process are ongoing,” a Tesla spokeswoman confirmed to PCMag, adding that the company has “always said we anticipated breaking ground at more than one site for the Gigafactory.”
Other states in the running include California, Texas, Arizona and New Mexico.
An official announcement is expected during a 4 p.m. PDT (7 p.m. EST) press conference, which Gov. Brian Sandoval teased Wednesday in a tweet.
When asked whether Reno is Tesla’s final choice, the Tesla spokeswoman would only say that “[w]e continue to work with the state of Nevada and look forward to joining Governor Sandoval and legislative leaders … in Carson City.”
“The Gigafactory represents a fundamental change in the way large scale battery production can be realized,” Tesla Motors CTO JB Straubel said in a recent statement. “Not only does the Gigafactory enable capacity needed for the Model 3 but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications.”
Construction is slated to begin later this year; the 10-million-square-foot plant should be up and running by 2017, when Tesla plans to introduce its $35,000 Model 3.
By 2020, the company aims to reduce the cost of lithium-ion cells, therefore decreasing the price of its cars.
And while Tesla does the heavy lifting—preparing, providing, and managing the land, buildings, and utilities—new partner Panasonic will manufacture and supply the all-important cylindrical lithium-ion cells. It will also invest in associated equipment, machinery, and other manufacturing tools as part of an agreement.
A number of other suppliers will join Panasonic on the assembly line in hopes of eliminating costs like packaging, transportation, and duty.
