The Pima County Board of Supervisors will vote this week on a lease-purchase agreement and incentives package for American Battery Factory, a Utah firm that plans to build a “gigafactory” at the Aerospace and Research Campus south of Tucson International Airport.
ABF posted a brief statement to its website last week announcing the deal and saying the Pima County development will be the “first in a planned series of U.S.-based gigafactories producing safe lithium iron phosphate battery cells.”
Total development costs to bring the plant to fruition are estimated at $1.2B, and the plant’s economic impact is projected at $3.1B over 10 years.
County documents say Pima economic development officials, regional partners and ABF have been in discussions about the project since January. Lease agreement terms have been in negotiation since October.
The plant will be developed in three phases over a planned 267 acres with an appraised land value of $23.2M. In the first phase, Pima County will lease up to 70 acres to ABF.
The 70-acre lease price for the first year is set at $455K and will increase to $502,250 by year five. After two years, ABF will have the option to purchase the full 267 acres for 90% of appraised value – a total of $20.9M – assuming construction goals and employment targets are met.
The project is planned for a variety of incentives from Pima County, and ABF also wants incentives from the Arizona Commerce Authority and the City of Tucson. County incentives support job training and assistance for recruiting, as well as support for the site procuring a Foreign Trade Zone designation.
Additional details are expected after the BoS vote. (Source)
