California is trying to lure Tesla's $5 billion Gigafactory away from other states

Tesla Gigafactory slides
Screen capture Tesla

At first, 4 states were in the running to host Tesla's massive $5 billion battery 'gigafactory' that would create about 6,500 jobs: Arizona, Nevada, Texas, and New Mexico (as you can see below). But apparently the gigafactory is so desirable that California has been trying to muscle in and convince the Californian EV maker to select it instead of one of the others.

Tesla/Screen capture

A bill was introduced in the California senate (SB-1309) to try to reel Tesla in. The language of the bill includes financial incentives and fast-track-like provisions that would expedite the construction process, something that should be attractive to Tesla, a company that is always in a hurry to make things happen.

In fact, Tesla is so time-sensitive that CEO Elon Musk has said that they would break ground simultaneously in at least two states to make sure that if something goes wrong in one, that they can continue construction in the second state and not lose any time. Talk about a large-scale redundant backup!

Tesla/Screen capture

The slide above shows the timeline for the gigafactory. Construction is planned to begin later this year.

Tesla/Screen capture

The Tesla gigafactory will produce about 35GWh/year of battery packs, with 20GWh of those going for electric cars and 15GWh going to stationary energy storage. This is expected to make the cost of batteries drop by at least 30%. Tesla plans to make about 500,000 electric vehicles per year by the time the gigafactory is up and running!

This battery factory alone would produce as much lithium-ion batteries as the whole world does right now, but Elon Musk says that about 200 factories of that size would be needed over time to meet electric vehicle demand. That seems like a lot until you think about how large the infrastructure required to meet oil demand for vehicles is right now, and how batteries can be recycled while oil is lost forever once burned. It's a much better deal, especially as we clean up the power grid, something that we have to do anyway.

Oh, and I almost forgot to mention: The gigafactory will run entirely on renewable energy...

Vimeo/Tesla/Screen capture

Via Greentech Media

Tags: California | Electric Cars | Electric Vehicles

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