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Gigafactory Nevada

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Gigafactory Nevada

Gigafactory Nevada (also known as Giga Nevada or Gigafactory 1) is a lithium-ion battery and electric vehicle component factory in Storey County, Nevada, United States. The facility, located east of Reno, is owned and operated by Tesla, Inc. The factory supplies battery packs and drivetrain components (including motors) for the company's electric vehicles, produces the Tesla Powerwall home energy storage device, and assembles the Tesla Semi. It is the largest (by land area) and the first Tesla Gigafactory in the world.

The facility is located at the Tahoe Reno Industrial Center (TRIC) and employed around 7,000 people at the end of 2018, with a goal of hiring thousands more with a total of nearly 10,000 statewide. The factory started limited production of the Tesla Powerwall home energy storage device in January 2016 using battery cells produced elsewhere and began mass production of cells in January 2017. The grand opening event was held on July 29, 2016.

The factory has been designed to become entirely energy self-reliant. Tesla intends to power the structure through a combination of on-site solar, wind and geo-thermal sources. According to Tesla CEO Elon Musk, one hundred factories like Giga Nevada would be necessary to transition the world to sustainable energy consumption without any increase in production density such as switching to a dry electrode coating process.

Initial public mention of the gigafactory concept was made in November 2013, although Tesla's internal plans predated that; Tesla had investigated almost 100 sites.[citation needed]

In July 2014, it was announced that Panasonic had reached a basic agreement with Tesla to invest in a factory, estimated to cost $5 billion. The northern Nevada site and plans were announced with state officials on September 4, 2014. Panasonic agreed to lead the battery cell production portion of the manufacturing, and Tesla CEO Elon Musk indicated in 2015 that the total Panasonic investment would be US$1.5–2 billion, and that Tesla would not expand beyond original plans. In early 2016 Panasonic president Kazuhiro Tsuga confirmed a planned total investment of about $1.6 billion by the company to equip the factory to full capacity. However, after the number of Model 3 reservations became known in April 2016, Panasonic moved production plans forward and announced a bond sale for $3.86 billion, most of it to be invested in Gigafactory.

Tesla initially considered several sites, but northern Nevada was not one of them. A manager at Reno–Tahoe International Airport offered some of its 3,000 available acres at Reno Stead Airport, and persuaded TRIC owner to split the bill for a private jet to fly Tesla people to the area. They tried several times, and Tesla eventually came to TRIC and was pleased by the speed of regulatory work.

At least five states competed to attract Gigafactory by offering tax abatements, tax credits, cash grants or other incentives: California, Arizona, Nevada, New Mexico, and Texas. San Antonio, Texas was seen as an early leader for offering bigger incentives and for being a state with a sales tax exemption on manufacturing equipment purchases. Overall, states with favorable sales tax regulations were seen as topping the list of preferred sites.

After sticky negotiations, Tesla chose the TRIC as the location of the Gigafactory mainly due to the speed of construction and regulatory work in the state and the State of Nevada's incentive package estimated to be worth $1.287 billion. Other location reasons were rail access, Nevada allowing direct sales of Tesla vehicles, and low air humidity. Additionally, the owners of TRIC agreed to give Tesla 1,000 acres for free, about 35% of the 2,900 acres the company needed.

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