Gigafactory 1

Gigafactory 1
Location of Gigafactory 1
Location Nevada, USA
Coordinates 39°32′31″N 119°26′24″W / 39.542°N 119.440°W / 39.542; -119.440Coordinates: 39°32′31″N 119°26′24″W / 39.542°N 119.440°W / 39.542; -119.440
Industry Energy storage
Products Lithium-ion batteries
Owner(s) Tesla Motors
Steve Jurvetson on a tour of Tesla Gigafactory 1.

The Tesla Gigafactory 1[1] is a lithium-ion battery factory which is under construction primarily for Tesla Motors at the Tahoe Reno Industrial Center in Storey County, Nevada, US,[2][3] slated to be operational by 2016[4] or 2017.[5] The projected cost to build the facility was approximately US$5 billion.[6] Nevada Governor Brian Sandoval estimated that Nevada would enjoy $100 billion in economic benefit over two decades from the construction of this factory.[7]

Rationale and construction

Tesla expects that Gigafactory 1 will reduce the production cost for their Electric vehicle battery and Powerwall packs by 30%. Its projected capacity for 2020 is 35 gigawatt-hours per year of cells as well as 50 GWh/yr of battery packs.[8] To achieve this the factory would employ approximately 6,500 people and supply 500,000 Tesla cars per year.[5][6][9]

In July 2014, it was announced that Panasonic had reached a basic agreement with Tesla Motors to invest in the factory.[10][11] Panasonic will lead the battery cell production portion of the manufactory, and Tesla Motors CEO Elon Musk has indicated that the total Panasonic investment would be US$1.5–2 billion.[12] In early 2016 Panasonic president Kazuhiro Tsuga confirmed a planned total investment of c. $1.6 billion by the company to construct the factory to full capacity.[13]

Factory location

Several sites were initially considered, including California,[14][15] Arizona, Nevada, New Mexico, and Texas. On September 3, 2014, the Reno-Tahoe Industrial Center in Storey County near Reno, Nevada was selected as the location of the Gigafactory with $1.25 billion of incentive grants from the State of Nevada in the form of tax breaks and perks.[16][17][18][19][20]

Grading had already begun prior to the September announcement during the summer of 2014, with vertical construction reported in January of 2015.[21] Tesla and its partners intend to complete the facility before 2020.[9]

Future expansion

Prior to the building of more gigafactories (see below), Tesla may expand and potentially double the size of Gigafactory 1. In June 2015, Tesla announced it exercised its option to buy 1,864 acres (754 hectares) of land adjacent to the original 1,000-acre (400 ha) Gigafactory site. Tesla Motors spokeswoman Alexis Georgeson. "The purchase gives us the opportunity for future growth." In Tesla's dealings with the state of Nevada expanding the size was always an option should the company choose to do so, said Steve Hill, director of the Governor's Office of Economic Development. "Tesla had said that the factory will be up to 10 million square feet [1 million square meters] in one or two stories," Hill said. "On the earnings call (in May 2015), Elon said they aren't yet committing to this but that they are considering increasing the size of the gigafactory here by 50 to 100 percent." [22]

Future Gigafactories

On April 30, 2015, Elon Musk announced that the factory heretofore known simply as the Gigafactory was now to be known as Gigafactory 1 as Tesla plans to build more such factories in the future. At the same event, Musk also said that he believed that other companies would build their own similar "Gigafactories".[1] After receiving $800M of orders ($179M PowerWall, $625M PowerPack) within 1 week of unveiling, Musk estimated that the Gigafactory 1 is not enough to supply demand.[23]

Tesla's activities and interest in Japan indicates that a Gigafactory, perhaps Gigafactory 2, could be built in that country. As of March 2015, Japan was the second-biggest source of Tesla components after North America.[24]

Controversy

In October 2015, there was an altercation between Tesla security staff and two journalists from the Reno Gazette-Journal, resulting in injuries and police arrest.[25][26]

References

  1. 1 2 "Elon Musk Debuts the Tesla Powerwall". YouTube. 30 April 2015. Retrieved 1 May 2015.
  2. ↑ "Tahoe Reno Industrial Center". Retrieved September 22, 2014.
  3. ↑ (4 September 2015) Matthew L. Wald. Nevada a Winner in Tesla’s Battery Contest. NY Times. Retrieved on 15 May 2015.
  4. ↑ Shahan, Zachary (15 February 2015). "Tesla Gigafactory Now On Schedule For 2016, Not 2017". Solar Love. Retrieved 12 June 2015.
  5. 1 2 "Planned 2020 Gigafactory Production Exceeds 2013 Global Production" (PDF). February 26, 2014. Retrieved 2014-06-05.
  6. 1 2 Cuthbertson, Anthony (March 20, 2014). "Tesla to Create World's Largest Lithium-ion Battery Factory". IBT. Retrieved 2014-06-12.
  7. ↑ Ohnsman, Alan (September 5, 2014). "Nevada Lures Tesla Plant With $1.3 Billion in Tax Breaks". Bloomberg.
  8. ↑ "Panasonic to pour billions of yen in Tesla's gigafactory as initial investment". ZDNet. October 7, 2014. Retrieved October 9, 2014.
  9. 1 2 "Gigafactory | Blog | Tesla Motors". teslamotors.com. Retrieved 2014-06-12.
  10. ↑ "Panasonic, Tesla agree to partnership for US car battery plant". Nikkei Inc. July 29, 2014. Retrieved 2014-08-01.
  11. ↑ John Kell (July 31, 2014). "Tesla, Panasonic team up to build Gigafactory". Fortune.
  12. ↑ Trudell, Craig (March 27, 2015). "Tesla Pushes Japanese Suppliers as It Seeks Battery Partners". Bloomberg.
  13. ↑ Ramsey, Mike (7 Jan 2016), "Panasonic Will Bet Big on Gigafactory", www.wsj.com
  14. ↑ “California's ‘Improbable’ Bid To Land Tesla's Gigafactory”, Forbes, May 26, 2014
  15. ↑ “California makes big plans to land Tesla battery ‘gigafactory’”, San Jose Mercury-News, June 6, 2014
  16. ↑ "Reports: Tesla Selects Nevada as Giga Battery Factory Site". Retrieved October 9, 2014.
  17. ↑ Jerry Hirsch (30 May 2015). "Elon Musk's growing empire is fueled by $4.9 billion in government subsidies". Los Angeles Times. Archived from the original on 28 October 2015. Retrieved 29 October 2015.
  18. ↑ Jerry Hirsch (30 May 2015). "Three companies, $4.9 billion in government support". Los Angeles Times. Archived from the original on 25 October 2015. Retrieved 29 October 2015.
  19. ↑ Jerry Hirsch (2 June 2015). "Elon Musk: 'If I cared about subsidies, I would have entered the oil and gas industry'". Los Angeles Times. Retrieved 29 October 2015.
  20. ↑ "Musk defends receiving $4.9 billion in government support for Tesla, SolarCity and SpaceX". RT English. Retrieved 29 October 2015.
  21. ↑ Photos: Structure taking shape on Tesla property. Reno Gazette-Journal. Retrieved 15 May 2015.
  22. ↑ Hidalgo, Jason (23 July 2015). "Going big: Will Tesla double size of gigafactory plant?". rgj.com. Retrieved 15 August 2015.
  23. ↑ Randall, Tom (8 May 2015). "Tesla's Battery Grabbed $800 Million in Its First Week". Bloomberg.com. Retrieved 15 May 2015.
  24. ↑ Edelstein, Stephen (30 March 2015). "Tesla pushes investors for a gigafactory in Japan". The Christian Science Monitor. Retrieved 21 May 2015.
  25. ↑ "Tesla says Reno journalist drove into security guards on Gigafactory grounds". Ars Technica.
  26. ↑ "Reno Gazette-Journal says Tesla Gigafactory guards accosted journalists". Ars Technica.

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