Gigafactory Nevada expansion starts for Tesla Semi and 4680 cells production

21 January 2024

After a year of waiting, Tesla has decided to kickstart the long-anticipated expansion. The ambitious plans for Gigafactory Nevada, aided by incentives to the tune of $330 million in tax breaks, are bringing Tesla Semi and the groundbreaking 4680 battery cells into the spotlight.

The Gigafactory Nevada project has been a crucial element of Tesla's strategy to secure a consistent supply of battery cells, fueling the growth of its EV empire. Originally, the plan outlined a facility capable of producing a staggering 105 GWh of battery cells and 150 GWh of battery packs annually, slated to be the largest building in the world.

Unfortunately, reality has not entirely lived up to the initial vision. The factory currently stands at just 30% completion, and expansion efforts have been dormant for years. Tesla's focus shifted towards optimizing existing production capacity and building new "vertically integrated" facilities, neglecting the Nevada plant's potential.

In January last year, Tesla finally broke the silence with a monumental announcement - a massive expansion of Gigafactory Nevada, aiming to produce Tesla Semis and the long-awaited 4680 battery cells at the originally planned scale. While Tesla is known for its swift actions, it took a full year to breathe life into this plan.

Recently, signs of progress have emerged, suggesting a "groundbreaking ceremony" for the expansion. However, the construction activity appears to be outside the previously designated area, hinting at the possibility of a new parking lot or an entirely separate building dedicated to the manufacturing of the Tesla Semi electric trucks.

While the specifics remain unconfirmed, it's encouraging to see any form of progress after years of stagnation. Tesla's pursuit of a manufacturing executive from Eli Lilly last year might have led to adjustments in the project's scope and strategy.

The Gigafactory Nevada expansion holds significant implications for Tesla's Semi project, which has struggled to gain momentum. The slow ramp-up of Semis has provided valuable insights, with units sent to Pepsi for local deliveries offering a glimpse into real-world performance and efficiency.

Equally important is the 4680 battery project, which has faced delays but is gradually picking up pace. While initial production levels fell short of expectations, suppliers like Panasonic are ready to increase production. Tesla is planning to add 6,500 full-time employees and produce enough 4680 cells to power 2 million light-duty vehicles annually.

Via