Thanks to Nevada Governor Joe Lombardo, we learned that Tesla is preparing to announce a massive expansion of its Nevada operations. Tesla made the official announcement, offering more details about the $3.6 billion investment.
Politicians love to brag about things that make them look good, and that’s how we found out that Tesla is planning a massive expansion of its Giga Nevada facility. Lombardo revealed bits of the plan in his 2023 State of the State address, although his announcement lacked details. Nevertheless, Tesla obliged and offered more information in an official statement, and we can confirm that the plans are bolder than many imagined.
First, it’s not just a Tesla Semi production facility that Tesla is planning in Nevada. Tesla also wants to build a second battery production facility with a planned capacity of 100 GWh. This facility will produce 4680 cells exclusively. Tesla initially said the production would suffice for two million electric vehicles but corrected it later to 1.5 million. The new value still implies an average battery capacity of 67 kWh, an interesting detail if we think of it.
Many 4680 cells would likely go into the Tesla Semi production and later the Cybertruck, which have bigger batteries. This means the capacity for passenger cars would be even lower, which almost confirms Tesla’s plans for a smaller, mass-market passenger car. It would have a battery capacity of around 45 kWh or even less. With the advancements in efficiency and the lower weight of a compact vehicle, the smaller battery should still offer a meaningful range.
I know this is just speculation at the moment, but if we consider initial Nevada plans, it makes a lot of sense. Giga Nevada broke ground in 2014 to produce electric motors and battery packs. The planned capacity was 35 GWh, and Tesla says this is enough to manufacture 500,000 EVs per year. The math shows us an average battery capacity of 70 kWh, which is relevant to the current Tesla models.
The location of the new battery factory is also strategically placed in the vicinity of a Redwood Materials battery recycling facility. Not only that, but key raw material mines are also not far away, with Nevada having the only active lithium mine in the U.S. These details point to a circular production chain, which would only boost Tesla’s plans in the region.
Tesla’s new investment is estimated at $3.6 billion and will create 3,000 additional jobs at Giga Nevada. The new facilities will add 4 million sq ft of new manufacturing footprint to the Nevada gigafactory, including Tesla’s first high-volume Semi factory. A Tesla statement only mentions the 500-mile version of the Semi, which makes us wonder whether Tesla is still committed to producing the 300-mile version of the electric semi-truck.
First, it’s not just a Tesla Semi production facility that Tesla is planning in Nevada. Tesla also wants to build a second battery production facility with a planned capacity of 100 GWh. This facility will produce 4680 cells exclusively. Tesla initially said the production would suffice for two million electric vehicles but corrected it later to 1.5 million. The new value still implies an average battery capacity of 67 kWh, an interesting detail if we think of it.
Many 4680 cells would likely go into the Tesla Semi production and later the Cybertruck, which have bigger batteries. This means the capacity for passenger cars would be even lower, which almost confirms Tesla’s plans for a smaller, mass-market passenger car. It would have a battery capacity of around 45 kWh or even less. With the advancements in efficiency and the lower weight of a compact vehicle, the smaller battery should still offer a meaningful range.
I know this is just speculation at the moment, but if we consider initial Nevada plans, it makes a lot of sense. Giga Nevada broke ground in 2014 to produce electric motors and battery packs. The planned capacity was 35 GWh, and Tesla says this is enough to manufacture 500,000 EVs per year. The math shows us an average battery capacity of 70 kWh, which is relevant to the current Tesla models.
The location of the new battery factory is also strategically placed in the vicinity of a Redwood Materials battery recycling facility. Not only that, but key raw material mines are also not far away, with Nevada having the only active lithium mine in the U.S. These details point to a circular production chain, which would only boost Tesla’s plans in the region.
Tesla’s new investment is estimated at $3.6 billion and will create 3,000 additional jobs at Giga Nevada. The new facilities will add 4 million sq ft of new manufacturing footprint to the Nevada gigafactory, including Tesla’s first high-volume Semi factory. A Tesla statement only mentions the 500-mile version of the Semi, which makes us wonder whether Tesla is still committed to producing the 300-mile version of the electric semi-truck.
We've come a long way since we broke ground at Giga Nevada in 2014.
— Tesla (@Tesla) January 24, 2023
To date, the team there has successfully produced:
- 7 billion battery cells
- 1.5 million battery packs
- 3.6 million drive units
- 1 million energy modules