Tesla will build a second Gigafactory somewhere in Europe and unlike the first Gigafactory, this facility is going to manufacture both batteries and vehicles. Elon Musk, Tesla’s CEO, announced the plan during a press conference in Germany. We won’t know the exact location until 2017.

This is something that we plan on exploring quite seriously with different locations for very large scale Tesla vehicles, and battery and powertrain production — essentially an integrated ‘Gigafactory 2.’
– Musk

Gigafactory 2 will be built after Tesla has “a clear handle on Model 3 production next year.”

Just with the Gigafactory that has already been built in Nevada, Tesla will be producing “more lithium ion batteries in a year than were produced in the entire world in 2013.”

Batteries produced at the two locations are intended for use in vehicles and in energy storage products like the Powerwall and Powerpack.