Last month, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk announced that the company is going to be build the largest battery site in the world. This could lead to a bidding war between states in the country.
The battery plant is expected to create 6,500 jobs as it will have a $5 billion investment associated with the project. Tesla Motors said on Wednesday that it is selling $1.6 billion of convertible notes to finance the 10 million square foot project. Possible locations include Texas, Nevada, Arizona, and New Mexico.
Tesla gave the project name “gigafactory.” The gigafactory would have more capacity than any other plant to produce lithium ion batteries, which would be used for their electric vehicles. Panasonic is also rumored to be an investor in the project.
Tesla Motors said that it is planning an investment of between $4 and $5 billion by the end of the decade and is financing $2 billion of the total. The convertible bond may rise to $1.84 billion. This plant is vital for Tesla Motors to increase volumes to around 500,000 or more electric vehicles per year from the expected 35,000 this year.