Tesla is preparing to invest $3.5 billion in a new manufacturing site or a substantial expansion of the existing facility in Northern Nevada, which will be producing the Semi models for the company. This announcement was made by Governor Joe Lombardo during his first State of the State speech and was subsequently confirmed by White House personnel.
According to Mitch Landrieu, President Biden's Infrastructure Coordinator, this project will invite private sector investment into clean energy and semiconductor manufacturing while providing thousands of jobs that offer good wages in Nevada. The factory is estimated to generate 3,000 employment opportunities within the state.
The location has already been producing electric car batteries and motors for Model 3 vehicles as well as some versions of the Semi prior to its recent launch. With volume production looming in the future, Tesla concluded that more space had to be created for their operations.
At present, it is not clear if this expansion refers to an entirely new facility or simply an upgrade of an existing one. However, state approval has been received by Tesla last summer so they can increase their permitted annual emission output while still following strict standards due to additional productions powered by the enlargement process.
In addition to this, Nevada has offered generous tax credits on vehicles and other incentives through Inflation Reduction Act that are eligible because of Tesla's selection of either building a new Gigafactory or extending an existing one on site. Suppliers working with Tesla also have access to funds from Biden’s infrastructure law passed back in November 2020. More details about this project will be released soon.
Source: Carbuzz