Brian Sandoval said the California-based company will use the plant to make cheaper and more efficient batteries for future cars. 

 

Correspondents say the factory will be a key part of Tesla's ambitions of taking on major automobile² companies. 

 

The "gigafactory" is predicted to bring nearly $100bn into Nevada's economy.

 

Mr Sandoval said that he hoped that target could be reached within the next 20 years, simultaneously³ reducing Tesla's battery costs by 30%.

 

Tesla will prepare, provide and manage the land and buildings, while Panasonic will make and supply the lithium-ion battery cells.

 

The plant is to be located in an industrial park in Story County, about 25km (15 miles) east of Reno, an area that currently has a population of around 4,000.

 

Nevada fended⁴ off competition from Arizona, Texas, New Mexico and California as the site for the factory, which is expected to create 6,500 jobs with another 16,000 more indirectly⁵.

 

Mr Sandoval said that the plant will become the "world's largest and most advanced battery factory".

 

He described the the selection of Nevada was as a "historic day" for the state.

 

Tesla Chief Executive Officer and co-founder Elon Musk⁶ said that while Nevada's offer to his company "was not the biggest incentive⁷ package", the state had proved it "can do things quickly" and "get things done".

 

Yoshihiko Yamada of Panasonic said in July that the factory would help the electric vehicle market grow.

 

Sales of zero-emission electric vehicles currently make up less than 1% of the world's car market.

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