Tesla has finally chosen a site for its Gigafactory, announcing today that Nevada will host the massive battery facility. The state was chosen over other candidates like Texas, New Mexico, Arizona, and California, and will benefit from nearly $100 billion in economic impact over the next 20 years, according to Nevada governor Brian Sandoval.
In late July, Tesla finalized its partnership with Panasonic, which will provide the manufacturing equipment and cylindrical lithium-ion cells needed to build the battery packs. Tesla was in charge of securing the land, and will invest $5 billion in the site and manage the factory once it's up and running. The Gigafactory's purpose is to streamline production of battery packs and bring down their cost, and subsequently the cost of electric cars. Tesla CEO Elon Musk has said the plant will be vital to the success of the Model 3, the brand's upcoming lower-priced EV sedan. The Tesla Model S and Model X SUV, due later this year, will also benefit from the Gigafactory eventually, as the plant is expected to cut battery pack costs by at least 30 percent.
This may not be the only site Tesla develops. The automaker said in April that it plans to break ground on two sites just in case there are any unforeseen delays. The Nevada site will eventually employ as many as 6500 people.