Tesla plans to expand its battery production in Nevada by building a factory with CATL equipment. According to a report by Bloomberg, Tesla will purchase the equipment and bear all the expenses, while CATL supports with the installation.
Cells for Megapack Energy Storage
The project is part of Tesla’s efforts to localize the supply chain for lithium iron phosphate (LFP) cells in the U.S. while allowing for cost-effective expansion. The facility will produce cells for Tesla’s high-volume Megapack product, which is already being built using cells from CATL. Tesla plans to take over the battery design for the cells produced at the new facility.
Initial capacity of ten gigawatt-hours
The annual production capacity of the plant is said to be limited to approximately ten gigawatt-hours in the initial phase. There will be options for expansion once the plant has been proven and the supply chain is in place. Commissioning of the plant will take place in 2025 at the earliest. Neither Tesla nor CATL have officially commented on this project.
