New construction pushes Tesla gigafactory spending past $62M to date
Construction costs at Tesla Motors' gigafactory site east of Reno reached at least $62.4 million to date as permitting activity picked up in late March.
New projects include a $2.1 million modification of the gigafactory's initial structural steel installation by Phoenix-based Schuff Steel Co. The first phase of the gigafactory's $15 million steel structure was started last December with a planned June finish date. Modification of the steel structure is now expected to wrap up in September.
Installation of a 1.5 million-gallon water tank by Reno contractor Farr Construction Corp. also kicked off in late March. This was followed by new concrete work for the site's main substation last week by Phoenix-based Suntec Concrete. Permits show a total cost of nearly $1.2 million for both projects.
Meanwhile, mass grading was started in February by Granite Construction at three sites within the gigafactory compound, and is expected to finish by August. Cost for groundwork vary from site to site but using a conservative estimate of $6 per cubic yard for the areas within the Tahoe-Reno Industrial Center, grading for the three sites likely cost at least $6 million, according to a professional estimator contacted by the Reno Gazette-Journal.
The estimated construction costs at the gigafactory through January was at least $53.1 million, bringing the total cost so far to at least $62.4 million for the gigafactory site based on permitting data alone. Designed to be larger than all the lithium-ion battery plants in the world combined, the joint project between Tesla and Panasonic is estimated to require a $5 billion investment through 2020.
Construction activity at the site has recently been a hot topic after union job boards mentioned delays and cutbacks at the gigafactory project, which Tesla strongly disputed.
"There is no slowdown of the Gigafactory construction underway, as anyone near Reno with eyes can verify," Tesla CEO Elon Musk said in a tweet last month. "It's not subtle."
The project also has been cited for helping fuel a rebound in Northern Nevada's construction industry, which saw a steep drop in activity during the recession.