Tesla select Nevada as location for their $5 billion gigafactory

Tesla has announced that its new gigafactory will be located near Reno.  Four other states were in the running for this major investment – Texas, New Mexico, California, and Arizona –  and the reasons for selecting Nevada are as follows.

  • The site is reasonably close to its car plant in California,  five hours by truck on Interstate 80.
  • There are rail and air links nearby.
  • The factory is likely to need 15,000 tonnes of lithium carbonate to make its batteries, and Nevada has the only active lithium mine in the USA.
  • True to its green principles, Tesla plan to use renewable sources of energy to run the factory, and of all the states, Nevada has the best solar resources.
  • Reno has become an “economic development hub”, attracting Apple and Amazon, as the state seeks to diversify its economy away from gambling.
  • The state has the right people and expertise for this large scale construction project, having a history of developing new tourism and energy infrastructure.
  • Right legal climate.  Some of the other states have statutes and laws that inhibit Tesla in some way, such as “right-to-work” and auto dealership protection.
  • Financial support and incentives.  No one appears to know how big the package actually is, but Tesla were asking for $500million….

Sources: Fortune, Forbes.

This entry was posted in Chap 04 Location and design, Sector: Manufacturing and tagged . Bookmark the permalink.

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