The electric vehicle revolution is coming to Sparks, Nevada.
According to a leaked report from Bloomberg, Tesla is on a mission to build a smaller battery factory with equipment from battery maker Contemporary Amperex Technology Co., Limited (CATL).
This smaller lithium iron phosphate (LFP) battery facility will produce cheaper battery cells ideal for Tesla's Megapack energy storage units. Manufacturers believe LFP batteries cost less, last longer, and take less of a toll on the planet than the lithium-ion batteries that power most Tesla vehicles.
With CATL's help, Tesla takes the driver's seat in manufacturing these LFP cells on American soil.
The Nevada-based factory will support local clean-energy jobs while scaling sustainable power solutions. American communities benefit from cleaner air and energy independence, and homes powered by Megapacks benefit from lower utility bills over time. Plus, the planet benefits from greener technology and manufacturing.
While details are still fuzzy, the plan allows the United States to boost domestic green battery production. Tesla controls operations and foots the bill, sidestepping hurdles foreign battery companies face stateside. It's a creative way to meet the growing demand for renewable energy storage and EVs.
As U.S. regulations push automakers to produce EVs domestically, CATL lends expertise to help Tesla secure the LFP battery supply chain. More ethical batteries could mean cheaper, longer-range electric cars.
"Tesla will have full control of the facility and cover 100% of the costs, and CATL personnel will be uninvolved other than helping to set up the equipment," the report from Bloomberg read.
Fred Lambert, editor-in-chief of EV news source Electrek, also applauds Tesla's decision. "CATL is a Tesla cell supplier, but the U.S. has been wary of Chinese cell manufacturers coming to the U.S. to take advantage of the tax credit," he said. "This is a way that benefits everyone, as Tesla is the manufacturer but it is using CATL's expertise through its machinery."
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