Will Tesla battery factory near Reno set off a new gold rush? (Sparks: sales)

[OpenD]

Now that the deal with the state is settled, but before concrete even starts pouring, there are some folks ready to bet this massive lithium-ion battery factory, a co-venture between Tesla and Panasonic, will set off a gold rush of new business to Northern Nevada. New development, new suppliers, new vendors, new people, new groceries, new dry-cleaners, and everything else that goes with rapid regional growth.

Here's how one publication sees it...

Tesla battery factory near Reno is bet Nevada will see new gold rush

"There's a tsunami coming in," Gilman said, referring to the businesses, developers and workers he envisions occupying the place some day. The site, already partly occupied by warehouses and distribution facilities for Wal-Mart, Amazon and Federal Express, is where Elon Musk's electric car maker Tesla Motors Inc. plans a factory to make batteries, helped by more than $1 billion of incentives provided by Nevada.
.....
"In the 1800s, Storey County was the richest place on earth because of the Comstock Lode, gold and silver," said Gilman, 69, who bought the land for the industrial park with a partner for $20 million in the late 1990s. "Then it became poor. Now, maybe it will be the richest place again."

That's a hope shared by Nevadans ranging from Republican Governor Brian Sandoval to the residents of nearby Reno, which exited the recession with an unemployment rate of 14 percent, well above the national peak of 10 percent during the economic downturn.

The Tesla deal, negotiated by Sandoval in hope of bringing as many as 22,000 jobs to the state, includes a $5 billion factory to produce lithium ion batteries for electric cars. Tesla alone may employ 6,500 people at the new plant, 20 miles east of Reno.
.....
Storey County officials say they don't want residential development near the site, a decision that means residents, business owners and local authorities in nearby Reno, Sparks and Fernley will likely be big beneficiaries of the jobs and money brought to town by Tesla.

"Our grocery stores are going to do well. Our clothing stores are going to do well," said Reno mayor Bob Cashell. "They're going to live here."

http://www.autonews.com/article/2014...-new-gold-rush

[OpenD]

And here's a key step taken, as the partners hope to "fast track" the recently announced Gigafactory development into production by early 2017, or perhaps even late 2016.

Tesla Gigafactory Update: Panasonic Establishes US Company In Nevada

Panasonic Corporation announced Friday that it has established the U.S. company that will supply Tesla Motors Inc. with as many as 500,000 electric car battery packs a year by 2020. The announcement is part of the ongoing collaboration between the Palo Alto, California-based luxury electric car company and one of Japan’s largest electronics producers to build the so-called Gigafactory, a lithium-ion battery production facility.
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Panasonic has worked with Tesla since 2007 and supplies the automaker with its 18650 high-energy rechargeable batteries. Each Tesla Model S vehicle battery pack contains thousands of the 2-inch-long cells. Telsa will need a constant supply of billions of these cells a year to meet its goals as it unveils the Model X crossover next spring and the lower-priced Model 3 by 2017. The Gigafactory will also build solar energy storage units for SolarCity Corp., the solar energy systems supplier founded by Tesla CEO Elon Musk.

Tesla said in a regulatory filing released after markets closed Friday that the two companies have agreed to a production planning process for the $5 billion factory, a price for the batteries Panasonic will supply to Tesla and what Panasonic will spend in installing the manufacturing equipment at the site. Tesla is paying for the construction of the facility while Panasonic Energy Corporation of North America will make the batteries.

Tesla Gigafactory Update: Panasonic Establishes US Company In Nevada

[utsci]

It will be interesting to watch. Of course Lance Gilman is going to say great things; he owns the property they are building on. I'm guessing he's drinking champagne all the way to the bank at this point. He bought ugly desert land in no-wheresville several years ago and he is selling it at a premium for the moment.

My concerns about this project...
Reno lacks educated workers...can Tesla train the population that lives here or are they going to advertise outside of the area

waste...what exactly does battery production entail, chemically speaking...what are the by-products

infrastructure...to start with let's talk roads. Can I-80 handle it? What about roads controls and closures due to weather and accidents?

If this really does bring in tons of new residents, what type of residents will they be? Will they be like Texas oil field where singles come in, work a few years, and then go back home? Will they be families that need housing, schools, etc? How educated will this population be? I don't need to know the average saleries. I need to know the salaries of the lower paid workers, the masses of workers. That will determine the housing and school needs.

Exactly what companies do they work most closely with that might relocate to the area, and again the same questions about their workers and their pay.

And since they are building in Lyon County, this might be great for them. But there is little housing in Lyon County so Washoe County might well take it in the shorts if the employees take up residence (and services!) in Reno-Sparks. What I am anticipating is that I-80 is going to be a nightmare from Fernley to the California line. With the level of traffic for suppliers and employees I really don't see how the existing road can handle the volume. Employees cannot live anywhere really close to their work site, there is no housing near the plant. So they will have to live in Fernley or Reno-Sparks. I know they are talking that the suppliers will be able to utilize the rail service out there, but there will still be TONS of product traveling by truck.

But for the time being it doesn't look like anything except construction will be going on out there until 2017. So for those working in construction this will be good in the short term. Then depending on the type of pay being offered to the worker bees at the plant, that will determine how this is going to impact housing...apartments or homes? Will the $$$ be there to imrove roads? Exactly how will it impact Lyon County and Washoe County really remains to be seen.

[MrWillys]

This has been a longtime relationship going back to at least 2010.

Panasonic Invests $30 Million in Tesla: Companies Strengthen Collaborative Relationship (NASDAQ:TSLA)

[MrWillys]

UTSCI, they're are building a road South to hwy 50 for trucks going south to LA to reduce the Impact on I80

[Hotfeet]

Originally Posted by utsci

And since they are building in Lyon County, this might be great for them. But there is little housing in Lyon County so Washoe County might well take it in the shorts if the employees take up residence (and services!) in Reno-Sparks. What I am anticipating is that I-80 is going to be a nightmare from Fernley to the California line. With the level of traffic for suppliers and employees I really don't see how the existing road can handle the volume. Employees cannot live anywhere really close to their work site, there is no housing near the plant. So they will have to live in Fernley or Reno-Sparks. I know they are talking that the suppliers will be able to utilize the rail service out there, but there will still be TONS of product traveling by truck.

Hi UTSCI: just curious why you think that Washoe County might take it in the shorts if Tesla employees reside there. Wouldn't they be paying property taxes to Washoe County? And paying sales tax there as well? Also boosting the local business income for stores, restaurants, new home construction and professional services? Schools and roads might be a bit busy at first but both of those can expand as needed if our elected officials do their job. I've lived in other "bedroom communities" that have many houses but few industrial businesses and the financial strength of those communities was strong. Plus I was happy not to live near big industrial plants.

[OpenD]

Originally Posted by utsci

My concerns about this project...

I suggest you read the details of the deal, which answer most of your questions.

Reno lacks educated workers...can Tesla train the population that lives here or are they going to advertise outside of the area

According to the deal, they are committed to hiring and training half their production staff from among existing Nevada residents.

waste...what exactly does battery production entail, chemically speaking...what are the by-products

Given Elon Musk's commitment to the environment, building a huge wind farm and a huge solar farm to partly power the plant, and a big battery recycling facility, I don't see this as an issue, just something to be planned for. And it's not a terribly toxic product or process.

infrastructure...to start with let's talk roads. Can I-80 handle it? What about roads controls and closures due to weather and accidents?

The deal with the state includes a certain amount of road and infrastructure development to be done by the state, yes.

If this really does bring in tons of new residents, what type of residents will they be? Will they be like Texas oil field where singles come in, work a few years, and then go back home? Will they be families that need housing, schools, etc? How educated will this population be? I don't need to know the average saleries. I need to know the salaries of the lower paid workers, the masses of workers. That will determine the housing and school needs.

Initially there will be up to 3,000 construction jobs for a couple of years. A lot of workers will likely come in to try to snag jobs, then move on to the next construction hotspot once the plant is up and running'

The masses of permanent production workers will be paid around $22 an hour, for jobs they'll learn on site. It can be expected that a certain number of more highly skilled engineers and management personnel will also work there, and many will come from other locations if qualified people who are already Nevada residents can't be found.

As far as schools, part of the deal is that Tesla will grant $35 Million upfront to the Reno school district to develop their staff and facilities for an increased population.

[RFF]

It'll be interesting to see how this unfolds and how it impacts the Reno/Sparks area.