Tesla is nearing completion of its first lithium iron phosphate (LFP) battery cell manufacturing factory in North America, located in Sparks, Nevada. This development marks a strategic move to reduce reliance on Chinese imports for LFP batteries, which are currently used in Tesla's Megapack products and electric Semis. The new factory is expected to enhance supply chain resilience, improve profit margins by eliminating cobalt usage, and benefit from U.S. incentives and tariff exclusions. Tesla CEO Elon Musk has described the facility as "vital to America," highlighting its importance in ramping up domestic battery production and supporting the localization of electric vehicle manufacturing in the United States.