Car manufacturer Tesla has confirmed its giant electric vehicles battery ‘Gigafactory’ will be built in Nevada, US.

The 456,000 square metre facility is expected to produce enough batteries for 500,000 Tesla cars every year.

The plant – expected to cost between $4 billion (£2.5bn) to $5 billion (£3bn) – will be a “net zero energy factory”, powered entirely by renewable sources, the company said.

Elon Musk, Chairman and CEO of Tesla Motors said: “The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come.”

Tesla is working with Japanese electric goods giant Panasonic on the project.