As expected, Nevada Governor Brian Sandoval officially announced Thursday afternoon that Tesla plans to build its massive battery factory in Nevada, just outside of Reno. Sandoval said the deal is still subject to approval and agreement by the legislature, but called the news “a monumental announcement that will change Nevada forever.”
Tesla plans to invest money directly into Nevada’s education system, which the governor said will have a huge positive effect on university and K-12 schools in the state. Nevada competed with other states like California, Arizona, Texas and New Mexico for the deal and Sandoval reminded the audience that Nevada competed hard to get the factory built in the state.
The battery factory will potentially cost $5 billion, will be developed in partnership with battery giant Panasonic and will mean 6,500 jobs for the Northern Nevada region. Sandoval is quoted in this Tesla release as saying the factory could bring “nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years.”
The Reno Gazette Journal has more on the financial details, including that it’s a $1.25 billion tax break for Tesla over 20 years, which is 13 times larger than the deal they put together for Apple in the region. It’s also more than double previous estimates for what Tesla would get. In return Tesla has to invest $3.5 billion in manufacturing equipment and property in the state. Depending on legislature approval, Tesla will also be able to sell cars directly to consumers in the state and the state will buy and extend the highway through the region.
Tesla CEO Elon Musk called Nevada a “get things done state.” He said the factory will be shaped like a diamond, will have solar panels on the roof and will get all of the energy that it needs through wind, solar, and geothermal power. It will also produce its own power.