That was the topic of discussion when I went on Bloomberg today. A few reasons I think it is Nevada’s to lose:

  • Nevada is geographically close to Tesla’s Fremont CA plant. Northern Nevada is on a quick direct Train route.
  • Northern Nevada also is the US’s only meaningful Lithium mine. Another huge deposit is located in near by Wyoming.
  • Nevada’s energy prices are higher than New Mexico or Arizona but still relatively low. Tesla however plans to use Solar and wind power, both of which northern Nevada has in spades
  • Texas won’t let Tesla sell cars direct to customers in the state. Arizona can’t go a year without trying to pass some crazy laws against gays, immigrants or other minorities.
  • Nevada has low taxes and pro-corporate laws.
  • Elon Musk likes going to nearby Burning Man

As for the cost of Li-ion batteries, Lithium is just a small bit. Cobalt and other materials are much more costly components.

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