Tesla Boosts Battery Production with New Fremont Facility

Electric vehicle manufacturer Tesla, Inc. is expanding its production footprint, taking on a new facility in Fremont, California. The company has signed a lease for the 210,000-square-foot advanced manufacturing facility located at 48401 Fremont Blvd., owned by San Francisco industrial real estate investment trust Prologis, according to two insider sources.

This new facility will reportedly support the production of Tesla’s innovative 4680 battery cell technology. This battery cell, which promises increased efficiency and longevity, is integral to Tesla’s plans for the upcoming rollout of its Cybertruck vehicle.

Previously, the Fremont facility was set for a transformation into a manufacturing hub for Applied Materials. However, public records reveal that Applied, which signed its lease in 2021, has withdrawn from the project they proposed in 2022.

Tesla’s investment in its battery technology started in 2020 as a part of their initiative to enhance the range and affordability of their vehicles.

“The priority one is yielding cost for the 4680 program as we steadily ramp up production ahead of Cybertruck next year,” said Andrew Baglino, Tesla’s senior vice president of powertrain and energy engineering.

The company already has facilities in Texas and Fremont, where a 5.5 million-square-foot factory operates, employing approximately 22,000 individuals. Despite Applied backing out from its plans for 48401 Fremont, the semiconductor equipment manufacturer had agreed to lease the space until Q3 of 2023.

Tesla Boosts Battery Production With New Fremont Facility
Photo courtesy of Tesla, Inc.

Prologis, having acquired the Fremont property during its acquisition of Duke Realty last year, will now lease it directly to Tesla. Notably, the building was delivered by Duke in 2021 and has remained unoccupied.

In summary, Tesla’s move to lease the new facility in Fremont signifies their growing focus on in-house battery production, underlining their commitment to driving down costs and ramping up the production of their much-anticipated Cybertruck.

Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is the Editor in Chief and Founder of EVXL.co, where he covers all electric vehicle-related news, covering brands such as Tesla, Ford, GM, BMW, Nissan and others. He fulfills a similar role at the drone news site DroneXL.co. Haye can be reached at haye @ evxl.co or @hayekesteloo.

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