When most people think of lithium-ion batteries, the first thing that comes to mind is electric vehicles. And while adoption of EVs may be leading the charge, with up to 30% When most people think of lithium-ion batteries, the first thing that comes to mind is electric vehicles. And while adoption of EVs may be leading the charge, with up to 30% of the nation’s vehicles expected to be electric within a decade, they’re not the only daily item powered by lithium-ion technology.
You may not realize it, but that cell phone in your pocket, the laptop you use for work, and the appliances that make your home comfortable are likely all powered by lithium-ion batteries.
The dramatic increase in everyday products using lithium batteries is why recent reports forecast the global lithium-ion battery market will increase fivefold, from around $85 billion in 2022 to more than $400 billion in 2030. And LVGEA believes Southern Nevada is uniquely positioned to capture a large slice of the ever-increasing battery market.
The Vegas Advantage
To start, Las Vegas’ proximity to Southern California’s ports is a strategic advantage for companies looking to source metals used in battery production. 90% of the world’s lithium is currently produced overseas, along with many of the other minerals needed for batteries, including cobalt, nickel, and graphite. Manufacturers also benefit from 60+ million customers and vendors being within a two-day drive of the city, including a growing number of lithium supply chain and component manufacturers supporting the industry.
We also have an opportunity to capitalize on California’s electrification standards for new car sales, which are the most aggressive in the nation. By 2030, 68% of new cars sold in California must be hybrid or electric; that number increases to 100% by 2035. Given California’s large population, this provides a huge opportunity for battery manufacturers to be located next door to the nation’s largest lithium-ion battery market.
Las Vegas is also centrally located between multiple developing lithium markets. Northern Nevada is home to the only operating lithium mine in North America, the Silver Peak Mine, with construction underway on the Thacker Pass mine, which studies have shown to be home to the world’s largest single deposit of lithium. Nevada is also home to all elements of the lithium industry, from mining to research and development to production to application and even recycling.
Northern Nevada is also home to the Tesla Gigafactory, Redwood Materials, and a growing number of companies within the lithium loop. To our south, Phoenix is home to Rivian, Lucid, and Electra Meccanica, among others. And both Arizona and California are home to large electronics and chip manufacturing facilities. Locating in Las Vegas allows companies access to each of these markets while enjoying lower operating and overhead costs.
Las Vegas also has a growing support system for the battery industry, including the Nevada Battery Coalition, which was launched in 2023 to provide public awareness and other resources for the state’s growing battery manufacturing industry. UNLV also offers a wide variety of interdisciplinary research laboratories that offer R&D opportunities for companies. The region’s educational institutions are also focused on creating a pipeline of skilled workers, with the Clark County School District operating multiple career and technical academies and charter schools focused on manufacturing, and the College of Southern Nevada recently opening the Center of Excellence to provide manufacturing training to students.
LVGEA’s Battery Manufacturing Strategy
LVGEA is focusing its recruiting efforts on companies that manufacture battery components, cells, and packs or companies that are involved in the application of electric vehicle technology. We’re targeting companies that have been in operation for at least five years with annual revenues of at least $10M.
Many battery manufacturing companies are currently located in California and the northeastern regions of the U.S., as well as in Canada. These will be our main target markets for acquisition and relocation considering those regions’ burdensome regulations and high costs of doing business.
LVGEA’s business development team has been researching this target industry since early 2023, attending last year’s International Battery Seminar in Florida, gleaning insights from companies and vendors that helped shape the organization’s attraction strategy. Later this year, LVGEA team members will be attending The Battery Show in Michigan, the largest annual advanced battery conference in the U.S. The in-person meetings and networking opportunities provide our team a forum to share the Vegas advantage when it comes to battery manufacturing.
Power Hub of the Future
Battery manufacturers have called the Las Vegas region home since the 1990s, and there has been a small integrated community here ever since.
That means Las Vegas is already home to a growing number of battery manufacturers, including Lithion Battery, which produces batteries, battery packs, and energy storage systems in Henderson. There’s also Ultion Technologies, a Nevada-grown lithium cell and component development company. And Rechargeable Power Energy North America, a leading provider of cutting-edge rechargeable energy solutions, recently announced an expansion to its Clark County facility.
Additionally, Entek Manufacturing, which makes battery separators for lithium batteries, opened a new 98,000-square-foot facility in Henderson in early 2023. And Quantum Copper, which was founded by a UNLV chemistry professor and a local entrepreneur, produces a non-toxic, fire-resistant polymer that makes lithium batteries safer.
Each of these companies understands the possibilities are endless within the battery manufacturing industry right now, and it’s the reason LVGEA is targeting the industry for expansion in Southern Nevada.
Southern Nevada’s battery manufacturing industry is alive with innovation, and as demand for electric vehicles and lithium-ion powered electronics continues to climb, Las Vegas is here to electrify efforts to help charge the world.
LVGEA needs the community’s support to continue to grow the region’s battery manufacturing industry. If you know of a battery manufacturing company looking to expand or that could be a great fit for Las Vegas, connect with LVGEA’s Business Development team.
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