Tesla is expected to build a $5 billion Gigafactory to produce batteries in Nevada, U.S., even as the company still undecided and other sites in New Mexico, Nevada and Arizona are also being considered.
Washington and California also considered as the location for the Gigafactory. Tesla will announce the location out of the five states and the site will be likely in Nevada. Denis Phares, CEO of Dragonfly Energy has earlier planned to make batteries in Nevada after the company was launched in 2012. Dragonfly acts middleman for online trade of Chinese batteries and is looking to manufacture high-end lithium-ion batteries with the help of funding.
“The goal is to bring manufacturing back home,” said Phares.
Tesla might also choose California due to the tax credits that was passed in the state. California is the home base of Tesla where the company plans to manufacture a Tesla S model priced at $30,000. Tesla also mentioned that the bid process for the setting up the facility has been given a boost by California.
Lithium sources have been identified in North America, though the only working mine is located in Silver Peak near Tonopah. Dragonfly will also face the tough task of supplying batteries to Telsa S cars which require about 7,000 blue little tubes. Most of lithium-ion batteries are imported from China and this was the reason for setting up of a Gigafactory which runs up to 10 million square feet. Tesla will prefer to set up a plant in California though Phares hopes that setting up a plant in Nevada will bring in more jobs and energy-related research.
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