Tesla, the electric vehicle and clean energy giant, has announced plans to invest more than $3.6 billion to expand its Nevada Gigafactory complex with two new factories. The first factory will be dedicated to mass-producing Tesla’s long-awaited Semi electric truck, while the second will be used to manufacture the company’s new 4680 battery cell. The new cell plant is expected to have the capability to produce enough batteries for 2 million light-duty vehicles annually, including batteries using the 4680-type cell. The 4680 cell is a key component in Tesla’s goal to halve battery costs and increase battery production by nearly 100-fold by 2030.
The expansion of the Gigafactory complex will also create around 3,000 jobs, extending the electric vehicle maker’s complex east of Reno, where it currently runs a battery joint venture with Japan’s Panasonic Corp and makes vehicle parts and power backup systems.
Despite initial plans to begin production of the Semi in 2019, the company has struggled to ramp up production of the 4680 battery cell at its factories in Fremont, California, and Austin, Texas. Experts have attributed this difficulty to the dry-coating technique used to produce the larger cells, which is new and unproven. However, with this new expansion, Tesla is committing to large-scale production of the Semi and increasing its battery production capabilities.
The Semi, a truck for 18-wheel semi-trailer vehicles, boasts a range of 500 miles on a single charge with a gross weight of 81,000 pounds, including the trailer and cargo. It may also qualify for tax credits of $40,000 offered for clean commercial vehicles under the Inflation Reduction Act. The company has a growing list of customers for the Semi, including PepsiCo, Anheuser-Busch, UPS, and Walmart.
Tesla’s announcement is a significant step forward for the company and the industry as a whole, showing a commitment to clean energy and innovation. Furthermore, it is the latest in a string of private sector investments in clean energy and semiconductor manufacturing announced since President Biden took office.
