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Tesla lithium deal catches state lawmakers off guard – Las Vegas Sun News

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SOURCE: Las Vegas Sun

After offering Tesla more than $1 billion in tax incentives to construct its factory near Reno, several Nevada lawmakers who approved the deal expressed frustration when the electric car company announced Friday that it had signed deals with two companies to obtain lithium — a critical component for its batteries — from northern Mexico, rather than from mines in Nevada.

The agreements with Bacanora Minerals and Rare Earth Minerals give Tesla below-market prices over the next five years for a long-term supply of lithium hydroxide, the compound used to make lithium-ion battery cells, from a site in northern Mexico.

“Like everyone, I was thinking we were going to use Nevada products if we could,” said Republican Sen. Pete Goicoechea of Eureka. “I think everyone’s a little bit concerned. We gave Tesla this big tax break and now they are extracting from outside of the country.”

READ MORE: Tesla lithium deal catches state lawmakers off guard – Las Vegas Sun News

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