Property, Plant and Equipment

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment

Property, Plant and Equipment

7. Property, Plant and Equipment

Property, plant and equipment at June 30, 2023 and December 31, 2022 consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	6,193	$	1,772
Construction in progress		821,349		575,141
Building and leasehold improvements		47,193		21,363
Software, machinery, and equipment		247,991		169,633
Property, plant, and equipment		1,122,726		767,909
Less: accumulated depreciation		(60,916)		(48,116)
Property, plant, and equipment, net	$	1,061,810	$	719,793

Construction in progress is primarily comprised of construction of four hydrogen production plants and our Gigafactory in Rochester, NY.  Completed assets are transferred to their respective asset classes, and depreciation begins when an asset is ready for its intended use. Interest on outstanding debt is capitalized during periods of capital asset construction and amortized over the useful lives of the related assets. During the three months ended June 30, 2023 and 2022, the Company capitalized $2.0 million and $1.5 million of interest, respectively. During the six months ended June 30, 2023 and 2022, the Company capitalized $4.0 million and $5.8 million of interest, respectively.

Depreciation expense related to property, plant and equipment was $7.3 million and $5.5 million for the three months ended June 30, 2023 and 2022, respectively. Depreciation expense related to property, plant and equipment was $12.8 million and $8.1 million for the six months ended June 30, 2023 and 2022, respectively.