Tesla opens first LFP battery factory in North America

Did you know that Tesla had to source all lithium iron phosphate cells (LFP) from Asia until now? With the new Tesla LFP battery factory in Nevada, the game changes: For the first time, the company is producing prismatic LFP cells right next to the Gigafactory Nevada – an important step to localize the North American supply chain and meet the demand for stationary storage.

The key facts at a glance

Location: directly at the existing Gigafactory campus in Sparks, Nevada
Capacity at launch: around 10 GWh per year, expansion planned within 1–2 years
Technology: proven wet-coating processes for prismatic LFP cells
Application area: primarily Powerwall and Megapack storage, (for now) no vehicles

Why LFP cells?

Safety & thermal stability: LFP cells are considered largely fire-resistant and temperature-insensitive.
Durability: up to 4,000 charge cycles without significant capacity loss.
Raw material advantage: no nickel, no cobalt – lower costs and fewer supply chain risks.

Strategic importance for Tesla
More autonomy in the supply chain
Until now, most LFP cells came from CATL in China. With its own production on site, Tesla saves import costs, tariffs, and shortens delivery times – especially important given the growing U.S. incentives for domestic battery manufacturing.

Accelerated expansion of Megapack & Powerwall
Tesla plans to increase the installed storage capacity by more than 50% by 2025. The LFP battery factory Nevada provides the basic components for this. Utilities in particular prefer LFP chemistry because it is robust and cost-effective.

Proven instead of experimental methods
While Tesla continues to rely on the complex dry-coating for the 4680 cylinder, the company deliberately uses the established, reliable wet-coating -Process back. Result: lower startup risks and faster ramp-up.

Outlook: What's Next?

Ramp-up to 20 GWh+: At full capacity, far over 200,000 Powerwalls or 40 GWh Megapack storage could be produced annually.
Integration into additional locations: If the ramp-up runs smoothly, a similar LFP plant in Texas is conceivable.
Potential for vehicle batteries: If the demand for more affordable LFP models like the Model 3 RWD remains high, future US vehicle lines could also rely on Nevada cells.

Conclusion
With the Tesla LFP battery factory in Nevada, the e-mobility pioneer opens a new chapter in its energy strategy. Local production, lower costs, and shorter delivery routes strengthen Tesla's position in the market for stationary large-scale storage and accelerate the path to a fossil-free energy future.