Tesla and Panasonic have started mass production of lithium-ion battery cells at their Gigafactory being built in the Nevada desert, with the initial output to be used in Tesla’s second-generation Powerwall and Powerpack battery devices.

The Gigafactory, set to become the world’s largest building, is on track to be turning out battery cells for Tesla’s upcoming Model 3 electric vehicle (EV) by the second quarter of 2017, Tesla confirmed Wednesday.