Last week Tesla announced plans to build a new large scale lithium-ion battery “gigafactory” within the next three years, and the automaker just revealed that it will require a massive initial investment of up to $5 billion. However by 2020 the facility could produce more lithium-ion batteries annually than the whole world produced in 2013.

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Tesla’s new gigafactory will help reduce the costs of lithium-ion batteries faster than originally planned when it powers up in 2017. It is estimated that it will drive down the per kWh cost of Tesla’s battery pack by more than 30 percent, which will reduce the overall costs of its upcoming Model E sedan. Tesla hasn’t confirmed where the new plant will be built, but the automaker is currently looking at sites in Nevada, New Mexico, Arizona and Texas.

Related: Consumer Reports Says Tesla Model S is the Best Overall Car You Can Buy

The new gigafactory will employ a total 6,500 employees and will take up to 1,000 acres of space when it’s completed. Tesla hopes that its new gigafactory and its new mass market Model E sedan will help it reach a sales goal of 500,000 vehicles per year by 2020.

+ Tesla

Related: Tesla is Sucking up the World’s Lithium-ion Battery Supply