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Industry
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The
governor of the US state of Nevada has said that the Tesla electric car maker
has chosen his state ahead of rivals for a $5bn battery factory.
Brian
Sandoval said the California-based company will use the plant to make cheaper
and more efficient batteries for future cars.
Correspondents
say the factory will be a key part of Tesla's ambitions of taking on major
automobile companies.
The
"gigafactory" is predicted to bring nearly $100bn into Nevada's
economy.
Mr Sandoval
said that he hoped that target could be reached within the next 20 years,
simultaneously reducing Tesla's battery costs by 30%.
Wild mustangs can still be seen roaming the hills of Nevada where the $5bn factory will be built |
Tesla Chief Executive Officer and co-founder Elon Musk said that Nevada was chosen because of its "can-do" attitude |
Tesla will
prepare, provide and manage the land and buildings, while Panasonic will make
and supply the lithium-ion battery cells.
The plant
is to be located in an industrial park in Story County, about 25km (15 miles)
east of Reno, an area that currently has a population of around 4,000.
Nevada
fended off competition from Arizona, Texas, New Mexico and California as the
site for the factory, which is expected to create 6,500 jobs with another
16,000 more indirectly.
Mr Sandoval
said that the plant will become the "world's largest and most advanced
battery factory".
He
described the the selection of Nevada was as a "historic day" for the
state.
Tesla Chief
Executive Officer and co-founder Elon Musk said that while Nevada's offer to
his company "was not the biggest incentive package", the state had
proved it "can do things quickly" and "get things done".
Yoshihiko
Yamada of Panasonic said in July that the factory would help the electric
vehicle market grow.
Sales of
zero-emission electric vehicles currently make up less than 1% of the world's
car market.
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