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Sep032014

StoryMap | Did Nevada Win the Gigafactory?

9/3 Update: Bloomberg News is reporting that two unnamed sources confirm Nevada has been picked for the Gigafactory.

SeekingAlpha has reported that Tesla Motors will be having a press conference with Governor Brian Sandoval of Nevada, tomorrow in Carson City, Nevada. 

Tesla Motors has mentioned that it would break ground in multiple locations throughout the year, so is an announcement on breaking ground first in Nevada? Or, is this factory that could cripple the oil and gas industry lock on auto industry?

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StoryMap | Gigafactory & R&D Expenses In Line for Tesla Motors, from May 8, 2014

Musk: "Groundbreaking on multiple sites, with the 1st one next month—did not identify though. It's really quite soon. Then, break ground on the 2nd one in one to two months. Calif. is back in the running, but it's improbable...lengthy approval of greenfield sites in Calif. as the reason it's not high on the list."

Musk: "We have signed a letter of intent with Panasonic and created a joint working team with Panasonic all the mutual topics. Heading toward a final agreement in latter part of the year." 

Musk: "Panasonic (cells) would be the only company producing cells for the Gigafactory. Think of it as an "industrial park under one roof," with other precursor material (for the battery) suppliers involved." Musk talked about mining companies and getting other components of the battery, such as Cobalt, in North America, to drive down the costs of the total battery. That's the advantage that the Gigafactory could produce.

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StoryMap | Gigafactory: Railways & Solar Key to Battery Factory, March 10, 2014: 

A story published today in the CNN tech section cites freight train access as a key component to Tesla Motor's planned Gigafactory battery plant.

From the story, Navigant Research analyst Sam Jaffe, says:

"The single-most important aspect is that it's near a rail line," said Jaffe, who specializes in the energy storage market. "These batteries are very heavy, and they have to ship them all the way to their plant in California." Put a rail line toward the top of the factory's basic requirements, and the list of possible locations narrows.

"If you look at the Union Pacific line, they go right through El Paso, cut through New Mexico, through Arizona, and then up through Nevada," Jaffe said. "And look at their Fremont plant; it's right next to the rail line."

Another wrinkle is a recent article from JobCorner blog that points to current Tesla suppliers in Arizona as possible reasons for a locating in the state, but another one is the 280-megawatt Solana solar thermal power plant in Gila Bend, AZ.

Solar power is another requirement for the Gigafactory plant, according to Tesla Motors, and this plant is operational and can produce power six hours after the sun goes down due to thermal component. Plus, Union Pacific goes right through the town of Gila Bend, some 70 miles southwest of Phoenix.

As the Tesla Motors turns.

Related Content: 

Gigafactory StoryMap | Tesla Whets Appetite for more News (EV Parade)

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