Tesla Leases Fremont Site for 4680 Battery Production: Report
In a move to strengthen its cutting-edge battery production, electric vehicle giant Tesla has leased a 210,000-square-foot advanced manufacturing facility in Fremont, California, sources revealed to the San Francisco Business Times. The facility, situated at 48401 Fremont Blvd., is owned by San Francisco industrial real estate investment trust Prologis.
The new plant will be utilized for the production of Tesla’s pioneering 4680 battery cell technology, which promises enhanced efficiency and longevity, say sources. The innovative 4680 cells are a critical element in the forthcoming launch of the company’s much-anticipated Cybertruck later this year, to be made at Gigafactory Austin in Texas.
The facility was initially earmarked for Applied Materials, which had signed a lease in the summer of 2021. However, the tech company withdrew from the project earlier this year. In turn, Applied’s departure allowed Prologis to lease the property directly to Tesla.
The Applied Materials’ exit from its plans for the 48401 Fremont property was confirmed by Fremont city staff, but reasons for the move remain undisclosed. Prologis, which had acquired the building during its acquisition of Duke Realty the previous year, is now directly leasing it to Tesla.
There are roughly 22,000 Tesla employees in Fremont, making the EV automaker the city’s largest employer.
Tesla has repeatedly emphasized its focus on battery technology improvements, with its senior vice president of powertrain and energy engineering, Andrew Baglino, highlighting the company’s emphasis on cost and quality. This new facility, adding to Tesla’s established presence in Texas and a sprawling 5.5 million-square-foot factory in Fremont, is a clear indication of Tesla’s ongoing commitment to advancing EV technology.