PALO ALTO (KPIX 5) — Known for its annual music festival, the Coachella Valley in Southern California has emerged as a potential location for Tesla Motors to build its widely anticipated battery factory.
Officials for the Palo Alto-based car company said the valley is a contender for the “gigafactory,” because of the region’s vast natural supply of lithium, which is needed in the car’s batteries.
According to the San Francisco Business Times, the automaker is expected to consume unprecedented amounts of lithium for its upcoming third generation vehicle. Tesla hopes to sell the vehicle for $35,000.
Tesla said it is also scouting sites in Arizona, Nevada, New Mexico and Texas for the factory.
Earlier this year, California lawmakers said they were looking at incentives to help push the electric car maker to build the gigafactory in the Golden State.