Nevada fended4 off competition from Arizona, Texas, New Mexico and California as the site for the factory, which is expected to create 6,500 jobs with another 16,000 more indirectly5.

Mr Sandoval said that the plant will become the "world's largest and most advanced battery factory".

He described the the selection of Nevada was as a "historic day" for the state.

Tesla Chief Executive Officer and co-founder Elon Musk6 said that while Nevada's offer to his company "was not the biggest incentive7 package", the state had proved it "can do things quickly" and "get things done".

Yoshihiko Yamada of Panasonic said in July that the factory would help the electric vehicle market grow.

Sales of zero-emission electric vehicles currently make up less than 1% of the world's car market.

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