Tesla Taking Over Facility in Fremont to Produce 4680 Batteries: Report
It is reported that Tesla is taking over a facility in Fremont to produce 4680 batteries. Increasing the mass production of batteries is one of the key tasks for the company.
Tesla leases space in Fremont
Tesla is taking over another manufacturing facility in Fremont, according to the Business Times. Sources told the publication that the manufacturer signed a lease on the building at 48401 Fremont Blvd. It is reported that San Francisco industrial real estate investment trust Prologis owns the 210,000-square-foot advanced manufacturing facility.
The new facility will focus on the production of 4680 batteries
The venture will support the production of Tesla 4680 batteries, according to a Business Times source. The source has direct knowledge of the deal but is not authorized to discuss it publicly, the publication wrote. Tesla is very interested in scaling up production of its new batteries as Cybertruck gets closer to production. The electric pickup truck will be powered by 4680 batteries. In addition, according to the IRA, battery manufacturers in the US will receive federal tax credits, which will reduce Tesla’s production costs.
The building was previously planned for Applied Materials
The facility at 48401 Fremont was once slated for a multimillion-dollar transformation into a manufacturing hub for Applied Materials. The company is engaged in the development of engineering solutions used to produce chips and displays. Public records from the city of Fremont show that Applied signed a lease on the building in the summer of 2021. However, the company withdrew from this project in 2022.
Fremont confirms Applied has abandoned plans for the building
The City of Fremont has confirmed that Applied has abandoned its plans for the facility at 48401 Fremont. Representatives of the city said they could not talk about the reasons for this. The semiconductor equipment manufacturer, which had agreed to lease the space through the third quarter of 2023, put the space up for sublease at the beginning of this year, wrote the Business Times.
Prologis acquired 48401 Fremont as part of its acquisition of Duke Realty last year. The company has taken the building from Applied and will lease it directly to Tesla, according to the source.