July 2, 2025 – Last month, Tesla made an announcement unveiling its lithium iron phosphate (LFP) battery cell plant in Nevada, USA, and disclosed that the facility is on the verge of starting production.
As reported by Electrek, Tesla has obtained a batch of older production equipment from its battery supplier, Contemporary Amperex Technology Co. Limited (CATL), to carry out “small-scale production” at this Nevada LFP battery cell plant.
Currently, Tesla’s entry-level Model 3 and Model Y vehicles, as well as all of its energy storage products like Megapack and Powerwall, rely entirely on LFP batteries. These products have been highly dependent on imports from Chinese suppliers. However, due to tariffs imposed by the US authorities, the cost of these batteries has been steadily rising in recent years.
It is understood that this Nevada plant is planned to produce approximately 10GWh of LFP cells annually. In the future, these cells will be used in the Megapack energy storage systems manufactured locally in the US. At present, Tesla’s factory in California has an annual production capacity of 40GWh for Megapack. The company is also planning to build a new Megapack factory in Texas, USA. This new facility will enable Tesla to avoid the high tariffs imposed by the US authorities for some of the Megapack products produced domestically.
