Redwood cited several reasons for the decision to base the company in Northern Nevada. One is proximity to the oldest and largest EV market in the world: California.
“California is one of the early adopters of electric cars years ago and it’s also going to be one of the ones to need a solution (for used EV batteries) a little bit before other places,” Straubel said. “We’re already seeing EV batteries and recycling some of them.”
Shrinking the distance for recycling as well as supplying recycled minerals for batteries is especially important when it comes to reducing the supply chain’s carbon footprint. In some cases, the minerals can travel tens of thousands of miles, which can include trips from South American mines all the way to China and Japan before they finally reach the United States.
Another reason Straubel cited for basing his company in Northern Nevada is familiarity. Straubel became keenly aware of how things work in Nevada while he was helping set up the Gigafactory — the tax climate, the process surrounding the permitting and construction of a new facility, workforce development, as well as the key players in the state. Straubel liked what he saw.
“It’s a very business-friendly climate politically and economically and there’s generally more space to grow,” Straubel said. “You could also build a company a little bit faster and do so without some of the constraints … you have in California or other places.”