Tesla shares first look at new LFP battery plant in Nevada as it nears completion

Tesla has given us our first look at their lithium iron phosphate (LFP) battery manufacturing facility, their first in North America. Located next to its Giga Nevada complex, the new factory represents an important move in Tesla’s battery strategy as the company works to localize their North American supply chain.

LFP (Lithium Iron Phosphate) cells are a type of lithium-ion battery that use iron phosphate as the cathode material. They are known for their excellent thermal stability, long cycle life, and enhanced safety compared to other lithium-ion chemistries like NCA (nickel cobalt aluminum) or NCM (nickel cobalt manganese).

According to the video, which Tesla shared over the weekend, it looks like Tesla will use of a wet coating process for electrode manufacturing. This is consistent with industry expectations and Tesla’s acquisition of production equipment from CATL, the world’s largest battery supplier.

CATL predominantly uses wet coating techniques, and reports suggest Tesla obtained this equipment over 18 months ago at a reduced cost due to oversupply.

This is obviously in contrast to a dry coating process, which Tesla has invested heavily for its 4680 cells. However, the company is still refining that process in Austin. The more established wet process presents fewer technical hurdles and is better suited for prismatic cells, which often require intermittent coating that dry processes currently struggle to achieve.

Nearing completion of our first LFP cell manufacturing factory in North America pic.twitter.com/OLNRWajz4l
— Tesla (@Tesla) June 28, 2025

The Nevada LFP plant is expected to start with an annual production capacity of 10 gigawatt-hours (GWh), a modest figure by Tesla’s standards but a meaningful investment in domestic cell production. It is estimated that reaching full production could take 1 to 2 years, as Tesla scales operations and refines processes.

It is also expected that the cells produced at this factory will be used for stationary grid storage products like Powerwall and Megapack, and the cells are not destined for vehicles.

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