Las Vegas Sun

March 28, 2024

Las Vegas eyed for plant called ‘industrial Bellagio’

Southern Nevada is on a short list of finalists for the construction of a battery production plant that could provide thousands of jobs, a newspaper reported today.

Avestor, a joint venture by Kerr-McGee Chemical Corp., Oklahoma City, and Hydro-Quebec, Montreal, intends to build a production plant for its revolutionary lithium-metal-polymer batteries.

In Business Las Vegas, a sister newspaper to the Las Vegas Sun, reported that a decision about where the plant will be located will be made in the third quarter.

The Avestor LMP battery joint venture is being hailed as a major breakthrough in battery technology because it provides superior performance to traditional valve-regulated lead-acid batteries at one-third of the size and one-fifth of the weight of the alternatives.

The new batteries are rechargeable, perform well in high temperatures and contain no battery acid or other liquids.

In addition to being a reliable power source in the telecommunications industry, Avestor is working to develop batteries that operate as backup systems for utility companies. Also, DaimlerChrysler has commissioned the company to develop a prototype battery for electric and hybrid cars and trucks.

All those applications have Avestor anticipating a flood of product demand.

Local and state economic development officials have not commented on prospects for a Southern Nevada Avestor plant by name, but they have referred to it in public meetings as "the industrial Bellagio," a reference to the size and prestige of the project.

Representatives of the Commission on Economic Development and the Nevada Development Authority said they could not comment on prospects for a battery plant in Southern Nevada.

A spokeswoman for Avestor said last week that the company hasn't determined where it would build its production plant, but a number of public documents and the company's Internet site have offered clues about the company's plans:

U.S. Avestor, an American subsidiary of Avestor, last year acquired more than 3,200 acres in Apex from Kerr-McGee for about $17 million.

Avestor's website discusses the company's ambitious growth plan. Discussing the company's first commercial operation and research center in a "prototype manufacturing facility" at Boucherville, Quebec, the company said it "is also planning the construction and exploitation of other plants to manufacture and commercialize LMP batteries for the telecommunications, industrial and automotive markets. These plants will be commissioned on a phased-in basis to meet market demands over the next years."

In Nevada's recently concluded legislative session, an amendment to legislation defining companies eligible for economic incentives also spells out that companies that get tax abatements and deferrals as renewable energy suppliers also includes "a facility for the production of an energy storage device."

In addition, a law beefing up the state's treatment of intellectual property was enacted. Specifically, the legislation amends a state law relating to patents, inventions and trade secrets, requiring violators to pay treble damages on all profits derived from producing imitation or counterfeit materials. Economic development officials said the legislation is directly related to the "industrial Bellagio" project.

Kerr-McGee already operates a plant in Henderson that produces materials for the manufacture of batteries.

Last month in Kerr-McGee's annual shareholder meeting, the company announced that the Avestor joint venture would soon begin commercial production of its LMP batteries. Kerr-McGee officials referred questions to Avestor.

Marie de Loppinot, marketing and communication coordinator for Avestor in Montreal, said last week that the 130,000-square-foot Boucherville plant that opened in September has about 250 employees and the capacity to manufacture 35,000 batteries a year. With the addition of more production lines, the plant could increase its output to 200,000 batteries a year, she said.

The company expects additional demand in the United States and is looking at potential sites for new plants. She confirmed that the Apex land is one of those sites. She did not say where or how many competitors are in the running, but other sources indicated that the company also is looking at locations in Arizona and New Mexico.

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