Set to be operated in partnership with Panasonic, the Gigafactory will employ 6,500 people building lithium-ion battery packs for over 500,000 vehicles per year by 2020, with aims to reduce costs through economies of scale and streamlining of logistics, the company said.

‘Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years,’ said Governor Brian Sandoval.

Elon Musk, chairman and CEO of Tesla Motors, added: ‘The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project.’