Tesla is nearing completion of its first lithium iron phosphate (LFP) battery cell manufacturing factory in North America, located in Sparks, Nevada. This facility represents a strategic move to reduce Tesla's reliance on importing LFP batteries from China, particularly for its Megapack energy storage products and Semi trucks. The new factory is expected to enhance Tesla's margins, mitigate supply chain risks, eliminate the use of cobalt, and benefit from U.S. incentives and tariff exclusions. Elon Musk has described the facility as "vital to America" as the company accelerates domestic battery production. Additionally, Tesla's Semi truck factory in Nevada is making strong progress, with the stamping shop operational and tool installations underway in the Powder Coat and Material Conveyance shops, signaling an upcoming ramp-up in production.