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.