Nevada has been selected as the state where Tesla Motors will build its $5 billion Gigafactory to produce batteries for its electric cars.
The decision was confirmed on Thursday by Elon Musk, CEO of the electric car maker, and Nevada Gov. Brian Sandoval in a joint press conference, according to PC Magazine.
"We have reached an agreement with Tesla Motor Company," Sandoval tweeted. The governor added that the decision was "great news for Nevada" and provides new economic opportunities for the state.
Tesla had spent months talking to state officials about the idea of bringing the facility to Nevada before Thursday's announcement, The Wall Street Journal reported.
Musk said choosing the site for the Gigafactory was "tight," but Nevada was picked out of several states because the company believed it would enable them to build the facility in less than three years. The CEO added that the factory will be able to power itself by running on geothermal, wind and solar energy.
The facility will not only create 6,500 jobs, but will also make Nevada $100 million over the next 20 years, PC Magazine reported. Tesla plans on producing 500,000 lithium-ion battery cells every year at the factory over the next six years.
"I am grateful that Elon Musk and Tesla saw the promise in Nevada," Sandoval wrote. "These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world."
Tesla is partnering with Panasonic on the Gigafactory's construction. Tesla will be in charge of taking care of the land, buildings and utilities, while Panasonic will create and supply the battery cells, as well as invest in related equipment and tools.
While the deal with Nevada has been signed, Tesla will continue to look at other locations in case the company doesn't receive the incentives it was promised, PC Magazine reported. Other candidates for the factory include Texas, New Mexico, Arizona and California.
Construction for the Gigafactory is scheduled to begin this year. Tesla plans to have the facility begin operation by 2017, the same year that the company is looking to unveil its $35,000 Model 3 electric car.
