Bob Potts Deputy Director NEVADA GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT (GOED)
How has Nevada's economic performance been in 2023?
In 2023, Nevada's economic performance has surpassed expectations, defying earlier concerns of a potential recession. Nevada leads in job growth among all states, maintaining a relatively low unemployment rate of 5.4%.
Looking forward, our state's economic development plan revolves around three core pillars: Electric Nevada, focusing on extractive mining and recycling; Innovative Nevada, contributing to advanced manufacturing, research and development, healthcare, and technology; and Connected Nevada, addressing comprehensive infrastructure development. This strategic plan, unveiled in March 2023, recognizes Nevada's unique urban-rural dynamics and positions the state for continued success.
How does Nevada aim to become a prominent lithium hub?
Our journey into lithium's prominence began back in 2014 when we initiated collaboration with Tesla and Panasonic. Initially focused on electric cars, this partnership expanded to address the broader requirements of power and storage in the form of lithium-ion cells. Witnessing a surge in demand for battery storage and energy storage, it became imperative to secure a robust supply chain domestically.
It is crucial to acknowledge the innovative nature of this industry, with companies constantly pushing boundaries in technology and techniques. From the interactive phase to recycling, the industry is marked by unprecedented growth. Notably, Tesla and Panasonic, pioneers in this space, have catalyzed the formation of entities like Redwood Materials, focusing on recycling. The recycling side has evolved beyond transforming discarded electronics into feedstock sent overseas. In recent years, there has been a significant shift towards domestic processing, involving the breakdown of materials, chemical processing, and the creation of essential components for battery production within the state. This integration extends to supporting auto manufacturing, with Tesla producing electric semis locally.
Do you have a final message for GBR’s audience?
Our ambition extends to being a pilot program for the entire US, contributing to energy independence, and addressing global challenges.
Frederick Steinmann Director UNIVERSITY CENTER FOR ECONOMIC DEVELOPMENT OF THE UNIVERSITY OF NEVADA, RENO
Can you explain what is Regional Technology and Innovation Hubs (Tech Hubs) Program?
The Regional Technology and Innovation Hub (Tech Hubs) program, established under the CHIPS and Science Act of 2022, is administered by the US Economic Development Administration (EDA). In August, we submitted our Phase 1 “Nevada Lithium Batteries and Other EV Materials” Tech Hub application, and on October 23rd, 2023, we were designated one of the 31 Phase 1 tech hubs.
The tech hub program aims to onshore critical elements of key industry sectors, enhancing economic independence and national security. Our focus on critical elements aligns with the program's objective to support advanced manufacturing and battery production, encompassing not just lithium but also gold, copper, nickel, zinc, and other essentials.
What is the anticipated funding range after completing Phase 2, and are there any matching requirements?
The expected funding after Phase 2, based on information from EDA, falls within the range of US$40 to US$75 million over a five-year period. There is a mandatory match requirement of a minimum of 10%, either in cash or in-kind, at the state or local level. Our goal is to secure the full amount of US$70 to US$75 million over the five-year span, aiming for a dollar-for-dollar match.
Our broader goal is to position Nevada as a unique player in the industry, encompassing the entire supply chain within the state—from extraction to manufacturing and recycling.
What are the main gaps in Nevada's quest to establish itself as a key player in the lithium or electric vehicle industry, particularly regarding processing?
Unfortunately, the US has not expanded its processing capabilities in mining and natural resource extraction due to environmental concerns. However, by collaborating with extractors, manufacturers, and processors, we can explore new technologies and approaches for more environmentally responsible processing.