Tesla LFP factory in North America almost finished: Perspective for ve

Imagine Tesla producing LFP cells directly in North America in the future – cheaper, safer, and without import tariffs. The new Tesla LFP Factory North America in Sparks, Nevada, is nearing completion and supplies Powerwall and Megapack with lithium iron phosphate cells. But the real highlight: This onshore production could soon make LFP vehicles possible in the USA again.

Production of LFP cells for Megapack and Powerwall

In Nevada, Tesla's first LFP cell factory on North American soil is being built, primarily for the Energy business:

Megapack scaling: 110% more deployments YoY, grid stability through energy storage
Powerwall: Longer lifespan, higher thermal stability, no cobalt
Cost advantage: Cheaper cell chemistry, cheaper production processes

Why LFP is ideal for stationary use

Thermal safety without fire risk
Long cycle life for decades in 24/7 operation
Price efficiency by avoiding nickel and cobalt

These properties make LFP unbeatable for large storage.

Strengthening the supply chain and energy sector

With its own cell production, Tesla avoids future geopolitical bottlenecks and import duties:

Independence from Chinese suppliers like CATL
Cost reduction for Megapack and Powerwall
Accelerated delivery to US customers and utilities

Thanks to Mega Nevada, Tesla can further expand energy storage capacity to over 80 GWh, while global demand already exceeds 250 GWh.

Return of LFP vehicles in North America

A domino effect of the new factory: Removal of tariff barriers for LFP packs paves the way for budget-oriented Tesla models in the USA. Possible from 2026/27:

Standard-Range Model 3/Y with LFP for lower base costs
New “Affordable Model” with even lower entry prices
Advantages: Regular charging to 100% without cell damage, solid range

Thus, Tesla facilitates access to electromobility and deepens mass market deployment.

Conclusion
The Tesla LFP Factory North America marks the next big step in Tesla's vertical integration. In addition to expanding Powerwall and Megapack, it paves the way for affordable LFP vehicles – a nod to the future of sustainable mobility and energy storage.