Tomahawk, WI 09/05/2014 (Basicsmedia) – The long wait and bidding war for the highly sought after Tesla Motors Inc. (NASDAQ:TSLA)’s battery ‘Gigafactory’ came to an end with the’ giant electric company announcing it had selected Nevada state for the project, according CNBC’s Phil LeBeau.
Tesla selecting Nevada comes as a surprise because California was thought to be in pole position, but the incentive package offered by the former looks to have sealed the deal.
“[…] The incentive package is going to be there, we understand that it is probably going to be anywhere between $400 million and $500 million that the state of Nevada will kick in, in the form of incentives for the location of that Gigafactory,” said Mr. LeBeau.
Location for the plant according to LeBeau makes a lot of senses considering it will only be 4 hours away from Tesla Motors Inc. (NASDAQ:TSLA)’s plant thus ensuring there is a direct pipeline for the transfer of any produced batteries. Nevada winning the project is a great achievement as the factory is expected to create a total of 6,500 jobs at a total cost of between $4 billion and $5 billion.
The geology of Nevada also looks to have played a significant role in the selection of Nevada as it is one of the few states with active Lithium mines that will be’ used for the production of the batteries
“Nevada is home to the only lithium mine the only active Lithium mine in the United States remember they are building Lithium-ion batteries so at the Gigafactory. Eventually, the goal is to produce a half million batteries packs a year by the end of this decade. The Gigafactory is scheduled to open in 2017,” said Mr. LeBeau.
Tesla Motors Inc. (NASDAQ:TSLA)’s CEO has in the past reiterated that the company may construct multiple Plants’ to speed up the production of the batteries. It awaits to be’ seen whether the company may opt to offer the other plants to the remaining states or all of them will be based in Nevada.