Tesla's ambitious Gigafactory project aims to drive down cost of lithium ion battery packs by 30 per cent

Nevada chosen as site for Tesla's Gigafactory

Pioneering electric car manufacturer Tesla Motors will build its lithium ion battery Gigafactory in Nevada, the company has announced.

The project, which aims to scale up production of long endurance lithium ion battery packs and drive down cost in order to make electric vehicles more accessible, was welcomed by Nevada’s Governor Brian Sandoval.

“This is great news for Nevada. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years,” Sandoval said. “I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fuelled with innovation and desire, are emboldened by the promise of Nevada to change the world.”

Tesla foresees the Gigafactory could produce 35GWh of cells and 50GWh of battery packs per year by 2020 and create 6,500 new jobs.

“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,” said Tesla’s CEO Elon Musk. “Together with Panasonic and other partners, we look forward to realizing the full potential of this project.”

Tesla’s partnership with Panasonic was announced earlier this summer. According to the agreement between the two companies, Tesla will secure the organisation side of the project, including site selection and management, while Panasonic will be supplying cylindrical lithium-ion cells and manufacturing equipment.

Tesla’s requirement was for the Gigafactory to be in a reasonable distance from its main manufacturing facilities in California. Arizona, New Mexico and Texas have also been in consideration.

Tesla said earlier the Gigafactory would help drive down cost of lithium ion battery packs by 30 pro cent and will produce more batteries per year by 2020 than all the world’s manufacturers have produced together in 2013.

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