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Gigafactory Press Release - 2014-Feb-26

Gigafactory Press Release - 2014-Feb-26

found at: www.teslamotors.com/blog/gigafactory

Looks like Tesla (and partners) are aiming for the Southwest United States for placement.

My opinion:
I was hoping for coastline, and that would put it in Texas. (for large shipments of raw materials)

But if a source for much of the materials can be found in the US, then the factory should be supplied by rail.

And of course, rail from proposed site to Telsa factory site.

Your thoughts?

jackhub | 26 février 2014

Elon said the factory would be powered by solar and wind. That, together with proximity, would seem to favor the Southwest.

Brian H | 26 février 2014

The PDF shows 4 southern tier states in the running for the factory, incl. NV, AZ, NM, and TX.

Brian H | 26 février 2014

Note that CA is not included.

Olof | 26 février 2014

Note that they plan 50GWh/yr pack output and 500,000 cars/yr. So average pack in Gen III will be close to 100kWh! assuming that car will be the majority of production.

Am I thinking correctly here?

If yes, the range should be pretty awesome, for a small car.

PorfirioR | 26 février 2014

@Olof,
I would not extrapolate the output like that. There will be 3 vehicles in production in 2020 as well as packs supplied to other partners like Toyota and Mercedes. Then again, who knows? You might be right.

In any case, I can already hear the whining if some Gen III vehicles come with larger battery packs than a 2013 Model S without retrofitting some owners free of charge under the threat of severe-pouting-with-arms-crossed. We might have to shut down the forum. Just kidding...(I hope)

PorfirioR | 26 février 2014

Texas is like the New York Yankees. You bring them in as a potential interested party in any contract to get the best deal out of everyone else. My vote goes for Nevada.

Bubba2000 | 26 février 2014

With a project of this size ($5+B), 6,500 employees, huge logistics, land costs, local+state taxes, cost+quality of labor, POLITICS, etc, Tesla and its consultants will develop a complex matrix to make their decision. Not an easy decision. Boeing made a decision to spread the development, manufacture of the Dreamliner across the world... turned out ugly.

I would prefer something close... California, Nevada. Arizona has weird politics, not friendly politically. Texas is too tied to oil+gas, pollution, crooked politically, Tesla can not even sell autos there directly. I am surprised Governor Jerry "Moonbeam" Brown did fix Tesla with some desert land close by, tax breaks, ROW, etc.

PapaSmurf | 26 février 2014

I am guessing it will be in Nevada as close as possible to the Tesla Fremont factory. Also there is a major lithium mine in Nevada in the northwest area of the state.

Captain_Zap | 26 février 2014

@Brian H

No Canada?

Iowa92x | 26 février 2014

Texas and New Mexico have the highest wind output, Nevada is close to CA. It will be one of those three.

http://www.windpoweringamerica.gov/wind_maps.asp

jk2014 | 26 février 2014

Hoping California can pull out a surprise incentive package. Losing 6500 new "green" jobs is hard to stomach.

agemc | 26 février 2014

I am hoping for Albuquerque NM. If you look at the NREL site you will see that Albuquerque is not only good for wind but, also great for solar. Also, the state is in decent shape financially. This is mostly due, ironically, to the revenue NM gets from oil and gas. Because of that, I think the state can offer some decent incentives. There are also close to 1 million people in the metro area compared to 500k in Reno. Additionally, Albuquerque has a large number of PHD educated adults living there and compares favorably to most large metro areas in the country. Finally, with major highways and rail running in all directions, transport to and from should be an asset.

EQC | 26 février 2014

It's definitely a tricky decision. Factors include:

Land cost
Local labor cost
Sun/wind potential
Local high-tech population (everything from research chemists to industrial manufacturing).
Access to railways, etc. for shipping.

Unless they plan to build a town around the factory, it doesn't seem like there will be many areas with a local, well educated/skilled population, desirable places for such workers to live, and 1000 acres of empty, cheap land within a decent commute distance. The Antelope Valley in California might work (~500,000 people, Aerospace industry, local Air Force base with research lab, local mining companies, tons of sun and wind, lots of open desert land) but it doesn't look like CA is in the running.

Brian H | 27 février 2014

I think the hi-lo-speed rail to Nowhere may have opened Elon's eyes to CA's priorities and self-destructive tendencies. And there's a reason the nick "Moonbeam" sticks like glue.

holidayday | 27 février 2014

Just had some thoughts:

Materials can be shipped by the unannounced Tesla Truck. They will need about 50-60 of these for continuous round-trips from the Gigafactory to Fremont. Of course, they'll have SuperDuperChargers by 2020 when this is a fully operational space station. . . I mean. . . Gigafactory. The Space (mining) station will come later.

furbrain | 27 février 2014

I'm no fan of Texas but it makes political sense to place the factory there because they currently have laws preventing Tesla from selling cars there. A battery plant would change that in a heartbeat.

jk2014 | 27 février 2014

The recycling program alone will be worth billions... Gigafactory is a major, major win to any state. Whichever governor/elected official gets the factory, might become so popular, they could ride it all the way to the presidency. Well a little exaggerated, but this will be as big an industry as the auto industry was to Michigan to the state that wins...

grraab2000 | 28 février 2014

While it is good to make use of AE, it would be smarter to locate this next to a nuke reactor. You can make use of the waste heat to pre-heat the lithium.
In addition, if they add in a small thorium reactor, they can burn up the 'nuclear waste', while also generating much higher temps (800+C). Then the amount of AE is reduced a great deal.
Regardless, this would allow them to have the lowest costs cells going.

gillfoto | 28 février 2014

I'd go with Nevada.

dz4 | 1 mars 2014

Does the fact much lithium reserves are found in south America, Bolivia in particular possibly have a part in the southern location?

Brian H | 1 mars 2014

No. Solar power, and closeness to the Fremont factory.

Bubba2000 | 1 mars 2014

Nevada is business friendly. Real estate is still beat up. Lot of desert land close to cities. Sunny and windy. Driving distance from N Ca. Rail line. Lithium processors like ROC close by. Best of all, no state personal income taxes. No extreme politics.

ksrisuk | 9 mars 2014

Western lithium has a large lithium mine there from hectorite clays which are the cheapest to produce battery grade Li from.
Also of great interest would be Bacanora minerals and JV partner Rare Earth Minerals Plc partner who are also hectorite clay with a massive lithium discovery in Hermosillo Mexico.

Bubba2000 | 9 mars 2014

No definitive plans from Panasonic and it's partners. Are they getting cold feet?

Location not selected either.

Any opinions?

jk2014 | 9 mars 2014

Right now negotiation tactics in full swing. Tesla angling to get best deal. Tesla the hottest new brand in world right now. Everyone and anyone would want to partner with them. This must be what networks experience when selling Super Bowl ad time...

M1STERD | 9 mars 2014

Anyone heard of Zenyatta (zen, TSX-v)

Just preparing PEA on amazing graphite mine in Nothern Ontario.
Cg purity is 99.99++% - ideal for next generation of battery's at new Giga plant.
They've got 20 yr production at 100K tonnes/yr
That will end up being the new graphite in the next generation of battery's. Toss it onto railcars, process it and meet the industries need for battery's for years to come

jbob | 9 mars 2014

ZENYF in the US. The initial results show that Zenyatta's graphite performs the same (if not better in some cases) than synthetic graphite which is used for the graphite anode in the li-ion battery. The reason why i like this discovery is that it is made up of graphite, quartz and feldspar. Since there are so few impurities, the company only uses a grinding, floating, wash, and caustic bake technique to purify to 99.99%. The properties from the simple process equal, if not, exceed synthetic graphite. In contrast, synthetic graphite made from flake goes through a lengthy thermal and acid leeching process to get to similar purities, then the graphite requires further process and shaping of the crystals to make synthetic graphite. The acid has such a huge negative impact on the environment, which is why the Chinese graphite industry is going through a bit of turmoil right not. The caustic soda discharge from Zenyatta's process can be reused and the by-product is silica…although the company has not tested if it is "high-purity" silica and can be sold (not it's primary focus)…there is an industry for this product. Overall, the raw graphite of Zen has an environmental advantage, an economic advantage due to the simple purity process, and possibly a product advantage (crystallinity, and electrical resistivity).

http://www.zenyatta.ca/article/2013-press-releases-233.asp

Zenyatta's product fit's very well with Elon's environmental values, as well as i think it could be a key ingredient to helping Elon reduce the cost of the EV battery by 30%. Zenyatta is meeting with end-users in Japan and South Korea in May, so we may find out if Zenyatta will be supplying the graphite powder for the li-ion anodes soon enough.

I really like Tesla and Elon's vision. Hope to own one soon!

grega | 9 mars 2014

These 2 read like spam. And a search for bent mind and jbob didn't find any other posts.

Timo | 10 mars 2014

Lobbying posts. Flagging.

jbob | 10 mars 2014

I agree. My post does sound like spam, but I've heard of M1STERD's company and passed what little i know on. Ignore if need be.

The gigafactory has huge potential to be a green factory…right from the raw materials in the earth, to the final battery and storage of energy. With any luck, Elon's environmental values will be a driving factor in the gigafactory's development and end products.

PapaSmurf | 10 mars 2014

Speculation as to the location. Requires a rail line nearby.

http://time.com/18114/heres-why-teslas-massive-new-factory-will-change-e...

slipdrive | 10 mars 2014

pure spec. Tuscon, AZ. Big solar. Livable Town. Rail.

Iowa92x | 10 mars 2014

Yes, you can see the rail lines in the rendering of the coming factory. 1,000 acres, sun, wind, rail and favorable political conditions are all needed when honing their site selection.