Elon Musk, Chairman and CEO of California-based Tesla Motors, announced on Thursday that the company's Gigafactory will be constructed in Nevada. Governor Brian Sandoval said that this agreement will bring nearly 100 billion dollars to the state over the next 20 years. This will also be the world's largest, most advanced battery factory, he said.
The plant is expected to provide 6,500 jobs.
"I am grateful that Elon Musk and Tesla saw the promise in Nevada," Governor Sandoval said. "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."
Although Tesla has reached a deal with Nevada, this won't be the only Gigafactory location. A Tesla representative said that discussions with other states are ongoing. "We've always said we anticipated breaking ground at more than one site for the Gigafactory," the rep told Tom's Hardware.
Tesla made the announcement that it was looking for places to build its Gigafactories back in February. That prompted (opens in new tab) Arizona, Nevada, New Mexico, Texas and Tesla's home state of California to compete for Tesla's business. All five have tax benefits and "other incentives," according to USA Today.
The Dallas Morning News, reporting that Tesla didn't choose the 700-acre site in southern Dallas County, said that Tesla plans to mass-market its $35,000 Model 3 electric car by 2017. The company is already manufacturing the Model S Sedan for a meaty $70,000. The main purpose of the Gigafactory is to create cheaper batteries so that the company can sell Tesla cars for a cheaper price.
According to the report, the Gigafactory will cost around $5 billion to build, and Tesla is expected to pay for half the cost. Panasonic will invest in equipment and build the Lithium-ion battery cells. Presumably, additional partners will cover the other half of the cost.
"I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state," Musk said. "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. Together with Panasonic and other partners, we look forward to realizing the full potential of this project."