Tesla has announced that it will build its $5 billion battery Gigafactory in Nevada. News of the deal leaked out ahead of time, but the partnership is now official.

The company first announced its plans for a Gigafactory in February. Its goal is to produce more battery capacity by 2020 than was produced worldwide last year, enough for 500,000 vehicles. Tesla expects cost savings of as much as 30 percent by the end of the first year of production of its mass market vehicle.

gigafactory aerial 520x391 Tesla chooses Nevada for its battery Gigafactory location

Nevada Governor Brian Sandoval said in a statement that the project will have “nearly 100 billion dollars in economic impact” on the state over the next 20 years. Tesla’s statement doesn’t mention the exact location of the factory, but reports have suggested that the site will be near Reno.

The Reno Gazette-Journal reports that Nevada’s tax breaks, if approved, could save Tesla as much as $1.25 billion over the next 20 years.

Nevada Selected As Official Site For Tesla Battery Gigafactory [Tesla blog]