As expected, Tesla Motors has selected Nevada as the home of its Gigafactory large-scale battery manufacturing plant.
Tesla CEO Elon Musk and Nevada Gov. Brian Sandoval revealed the news in a joint press conference on Thursday.
“We have reached an agreement with Tesla Motor Company,” Sandoval tweeted, sharing a photo of himself, Musk, and local legislators on the steps of the Capitol Building in Carson City.
The $5 billion factory will employ 6,500 workers and produce 500,000 lithium-ion battery cells annually over the next six years.
“This is great news for Nevada,” Sandoval said in a statement, boasting about the economic possibilities for the state.
Ladies and gentlemen, we are ready to lead. #Tesla #AllNevada
— Governor Sandoval (@GovSandoval) September 4, 2014
By building the world’s largest and most advanced battery factory, Tesla is expected to drive $100 million into the Silver State over the next 20 years.
“I am grateful that Elon Musk and Tesla saw the promise in Nevada,” Sandoval added. “These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world.” And Nevada, the governor said, is ready to lead.
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 electric vehicle.
By 2020, the company aims to reduce the cost of lithium-ion cells, therefore decreasing the price of its cars.
“The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come,” Musk said.
While Tesla does the heavy lifting—preparing, providing, and managing the land, buildings, and utilities—partner Panasonic will manufacture and supply the all-important cylindrical cells. It will also invest in associated equipment, machinery, and other manufacturing tools.
“Together with Panasonic and other partners, we are looking forward to realizing the full potential of this project,” Musk added.
Despite inking an agreement with Nevada, Tesla will continue prepping a second location, in case the state government does not provide the incentives it promised.
“We’ve always said we anticipated breaking ground at more than one site for the Gigafactory,” a Tesla spokeswoman said this week.
Other states in the running include California, Texas, Arizona, and New Mexico.
