{"id":1004092014,"date":"2014-02-28T07:42:59","date_gmt":"2014-02-28T15:42:59","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004092014"},"modified":"2022-12-04T20:14:32","modified_gmt":"2022-12-05T04:14:32","slug":"tesla-eyes-4-states-for-5b-battery-factory","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/tesla-eyes-4-states-for-5b-battery-factory\/","title":{"rendered":"Tesla Eyes 4 States for $5B Battery Factory"},"content":{"rendered":"<p><i>By Gail Kalinoski, Contributing Editor<\/i><\/p>\n<div id=\"attachment_100409\" style=\"width: 145px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/Sam-Jaffe-220.jpg\"><img decoding=\"async\" aria-describedby=\"caption-attachment-100409\" data-attachment-id=\"1004092017\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/tesla-eyes-4-states-for-5b-battery-factory\/sam-jaffe-220-150x150\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/Sam-Jaffe-220-150x150.jpg\" data-orig-size=\"150,150\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Sam-Jaffe-220-150&#215;150\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/Sam-Jaffe-220-150x150.jpg?w=150\" loading=\"lazy\" class=\" wp-image-1004092017 \" alt=\"Sam-Jaffe-220-150x150\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/Sam-Jaffe-220.jpg\" width=\"135\" height=\"135\" \/><\/a><p id=\"caption-attachment-100409\" class=\"wp-caption-text\">Saam Jaffe, Navigant Research<\/p><\/div>\n<p>According to The Dallas Morning \u00a0News, four Southwest states &#8211; Texas, Arizona, New Mexico and Nevada &#8211; are in the running to be the home of Tesla Motors Inc.\u2019s $5 billion \u201cGigafactory\u201d that would mass produce lithium-ion batteries for electric cars and create about 6,500 jobs.<\/p>\n<p>In a blog post on its website, Tesla said it expects to make a final site selection and begin construction this year. The company said it is looking to build a 10 million-square-foot facility on 500 to 1,000 acres of land. A rendering showed pictures of new solar and wind farms nearby to power the factory. Once construction ia completed in 2015, equipment would be installed the following year and production of the batteries for Tesla\u2019s third-generation electric cars would begin in 2017. The Palo Alto-based company expects to be producing up to 500,000 vehicles a year at its Fremont, Calif., plant by 2020.<\/p>\n<p>\u201cIn cooperation with strategic battery manufacturing partners, we\u2019re planning to build a large-scale factory that will allow us to achieve economies of scale and minimize costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead,\u201d the company said in the blog posting.<\/p>\n<p>Tesla said it plans to invest about $2 billion in the factory and partners would invest another $2 billion to $3 billion. Panasonic, which is the primary battery supplier for Tesla\u2019s Model 6 vehicle, is expected to be one of the partners.<\/p>\n<p>The statement said that by 2020 the Gigafactory would produce more lithium batteries than were made around the world in 2013.<\/p>\n<p>Tesla didn\u2019t give locations within each state. The Reno Gazette-Journal in Nevada reported that a site near Reno-Stead Airport and the Tahoe Reno Industrial Center was being considered. The newspaper noted it is the site closest to the Fremont car plant.<\/p>\n<p>Steve Hill, director of the Nevada Governor\u2019s Office of Economic Development, said in a prepared statement this week that the state was \u201chonored to be included in their list of finalists.\u201d<\/p>\n<p>\u201cOur office has been working with the regional development authorities and local governments to highlight what Nevada offers: a skilled workforce, responsive workforce development and training programs, exceptional quality of life, great schools, low operating costs, and a commitment from the State of Nevada to provide the climate necessary for innovative businesses to thrive.\u201d<\/p>\n<p>Sam Jaffe, an analyst at Navigant Research, said the main things Tesla is probably considering are close access to rail lines, incentive packages from the states, renewable energy issues and environmental regulations.<\/p>\n<p>\u201cThere are so many things you can get from a government like lower electric rates, certain benefits for employees,\u201d he told <i>Commercial Property Executive<\/i>. \u201cThis thing is so big and so important to the economies of these states, he\u2019s (CEO Elon Musk) going to be inundated with all kinds of creative ideas.\u201d<\/p>\n<p>Jaffe said there may be other contenders out there as well.<\/p>\n<p>\u201cThe four states they mentioned are not the only states that could end up being the winner,\u201d he added. \u201cThey are essentially announcing let the games begin. I am not counting out California.\u201d<\/p>\n<p>He said Tesla\u2019s goal is to make batteries as cheaply as possible.<\/p>\n<p>\u201cOne way to do that is putting it close to where you are actually assembling the car,\u201d Jaffe concluded.<\/p>\n<p>He doesn\u2019t rule out West Texas, though, because of Tesla\u2019s plan to install solar and wind farms at the site.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Four Southwest states  &#8211; Texas, Arizona, New Mexico and Nevada &#8211; are in the running to be the home of Tesla Motors\u2019 $5 billion \u201cGigafactory\u201d that would mass produce lithium-ion batteries for electric cars and create 6,500 jobs.<\/p>\n","protected":false},"author":1068,"featured_media":1004092017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21748,21783,21742],"tags":[],"class_list":["post-1004092014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-industrial","category-investment","category-latest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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