Tesla's New Nevada Plant to Boost US Battery Production by 2025
Tesla is expanding its news today with a new battery plant in Nevada. The facility, using idle equipment from Chinese company Contemporary Amperex Technology Co. Ltd. (CATL), is expected to be operational by 2025 and contribute significantly to Tesla's regional battery production.
The new plant is part of Tesla's broader strategy to onshore the supply chain for lithium-iron-phosphate cells in America. Tesla will purchase machinery from CATL and install it in the city of Sparks, Nevada, initially producing around 10GWH. This arrangement allows Tesla to double its battery capacity this year at an existing factory in Lathrop, California, while also setting up new facilities cost-effectively.
Tesla's existing Megapack product already uses CATL cells, and the new facility will follow the design of those batteries. The plant could eventually account for about 20% of Tesla's tesla stock in the region. Tesla will have full control of the new facility and cover 100% of the costs, with no involvement from CATL personnel other than initial setup. This move may help Tesla sidestep criticism about US companies' dependence on Chinese partnerships.
The new battery plant in Nevada is set to boost Tesla's production capacity and reduce its reliance on foreign suppliers. With an initial output of around 10GWH and potential expansion, the facility is expected to play a significant role in Tesla's regional battery production by 2025.
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