AUSTIN, Texas: Tesla gas announced an investment of more than $3.6 billion to expand its Nevada Gigafactory complex with the addition of two new factories.
Plans call for one factory to mass produce its Semi electric truck, and the other to manufacture its new 4680 battery cell to power 2 million light-duty vehicles annually.
Tesla's goals of halving battery costs and ramping up battery production nearly 100-fold by 2030 are dependent on the 4680 cell. The company has struggled to increase production of the 4680 at its factories in Fremont, California, and Austin, Texas.
The two new facilities will employ some 3,000 people, extending the electric vehicle maker's complex east of Reno, where it runs a battery joint venture with Japan's Panasonic and makes vehicle parts and power backup systems.
Tesla assembles battery packs from cells supplied by Panasonic to the gigafactory.
The announcement also indicates that Tesla has finally committed to the large-scale production of the Semi, which was originally planned to be launched in 2019. Tesla only made the first Semi deliveries in December to Pepsi.
The Semi is an 18-wheel semi-trailer vehicles and has a range of 500 miles (800 kilometers) on a single charge. Under the US Inflation Reduction Act, the truck could qualify for tax credits for clean commercial vehicles worth $40,000.
"Tesla's announcement is the latest in more than $300 billion in private sector investment in clean energy and semiconductor manufacturing announced since the President took office," noted Mitch Landrieu, senior White House advisor.