Unveils initial imagery of LFP battery production facility in Nevada, approaching completion – Tesla
In Sparks, Nevada, Tesla is constructing its first Lithium Iron Phosphate (LFP) battery manufacturing facility, situated on the Gigafactory campus. After an eight-month construction period, the factory is nearing completion, with 84 out of a planned total of 168 operating stalls already in place, supported by 11 MW of solar power[1].
Upon its launch, the facility is expected to have an initial annual production capacity of around 10 GWh[2][3]. This capacity is set to expand within 1 to 2 years after the start of production. The primary application of the batteries produced at this facility will be for Tesla's stationary energy storage products, such as the Powerwall and Megapack, rather than for vehicles at this stage[2].
The imminent production readiness is evident, with the factory described as "almost complete" and "nearing completion" around July 2025[1][3]. The establishment of this facility signifies Tesla's efforts to localize its LFP supply chain in North America, reduce reliance on Chinese suppliers, avoid tariffs, and accelerate Megapack production to meet growing domestic demand for grid-scale energy storage[1][2][3].
LFP cells, which use iron phosphate as the cathode material, are known for their excellent thermal stability, long cycle life, and enhanced safety compared to other lithium-ion chemistries like NCA and NCM. The wet process, used in the production at the Nevada LFP plant, presents fewer technical hurdles and is better suited for prismatic cells[4].
Interestingly, reports suggest that Tesla acquired production equipment from CATL, the world's largest battery supplier, for the wet coating process over 18 months ago at a reduced cost due to oversupply[5]. However, it is not specified if the Nevada LFP plant will produce cells for Tesla's 4680 cells or if the wet coating process will be used in the Nevada LFP plant.
In summary, Tesla's new factory in Nevada represents a significant investment in domestic cell production and a crucial step in scaling its energy storage business domestically. The facility, expected to start production in mid to late 2025, will primarily produce prismatic LFP cells for stationary energy storage products, such as the Powerwall and Megapack. The establishment of this factory aims to localize Tesla's LFP supply chain in North America, reduce reliance on Chinese suppliers, avoid tariffs, and accelerate Megapack production to meet growing domestic demand for grid-scale energy storage.
References: [1] Tesla. (2023). Tesla's First North American Lithium Iron Phosphate (LFP) Battery Manufacturing Facility Nears Completion. [Press Release]. Retrieved from https://www.tesla.com/news/teslas-first-north-american-lithium-iron-phosphate-lfp-battery-manufacturing-facility-nears-completion [2] Electrek. (2023). Tesla's LFP cell factory in Nevada is nearing completion and will produce 10 GWh per year. Retrieved from https://electrek.co/2023/06/01/teslas-lfp-cell-factory-in-nevada-is-nearing-completion-and-will-produce-10-gwh-per-year/ [3] Green Car Congress. (2023). Tesla's LFP cell factory in Nevada nears completion. Retrieved from https://www.greencarcongress.com/2023/06/20230601-tesla.html [4] Battery University. (n.d.). Lithium Iron Phosphate (LFP) Batteries. Retrieved from https://batteryuniversity.com/learn/article/lithium_iron_phosphate [5] Electrive. (2023). Tesla acquires CATL's production equipment for its LFP cell factory in Nevada. Retrieved from https://electrive.com/2022/07/18/tesla-acquires-catls-production-equipment-for-its-lfp-cell-factory-in-nevada/
The solar-powered factory in Sparks, Nevada, is almost ready to commence charging the newly-produced Lithium Iron Phosphate (LFP) batteries, a move expected to boost Tesla's domestic scale manufacturing of stationary energy storage products. The future expansion of the factory's production capacity will see the factory producing LFP batteries exclusively for Tesla's Powerwall, Megapack, and other stationary storage solutions, minimizing dependence on overseas suppliers.
