Tesla Motors made the official announcement that Nevada will be the place where it will build the massive battery factory. The final details are still not available, but we do know that the battery factory will be company’s key to the success of its upcoming electric cars. For those who don’t know, Tesla’s plans are to build cheaper and more efficient battery packs as it prepares to roll out the Model 3 in 2017, with a price tag of $35,000.
Accordind to Steve Hill, executive director of Sandoval’s office of Economic Development, Nevada Governor Brian Sandoval will need $1.3 billion in financial incentives in order to help Tesla build its factory. The new Gigafactory is expected to cost up to $10 billion.
If it receives the $1.3 billion which will come in form of tax breaks and abatements, Tesla will need to invest a minimum $3.5 billion in manufacturing equipment and real property in the estate.
According to Elon Musk, Nevada’s incentive package wasn’t the biggest offered to Tesla but they chose it because it can do things quickly. California, Texas, Arizona and Mexico were also in the cards but it appears that Nevada won the competition for the biggest lithium-ion factory in the world.
A part of the cost of the plant will be supported by Panasonic, which will produce ion cells for the battery packs. Around 50% of the investment will be covered by Tesla, while Panasonic will fund up to 40 percent.