The electric start-up carmaker promised Nevada it would buy bonds and offer other funds for the infrastructure needed for Faraday’s future plant.
Faraday Future plans to invest 1 billion dollars in a plant in North Las Vegas, with the aim of making long-range electric cars by 2017. Last month, state government said it would not grant subsides until the electric maker can prove its full liquidity or at least some of the cash. Nevada asked Faraday to put up as much as 75 million dollars as collateral before the state begins to issue bonds for infrastructure projects for the site. In a letter recently sent to Steve Hill, director of the Governor’s Office of Economic Development, the startup company backed by Chinese billionaire Jia Yueting pledged to buy a surety bond of up to 75 million dollars and deposit another 13 million dollars as backup funding for the infrastructure needed for the planned factory, Las Vegas Review-Journal reported. Following the December deal, Nevada approved as much as 215 million dollars in tax incentives and credits for the plant, which would ultimately employ as many as 4,500 people.
“The installation of infrastructure at Apex Industrial Plant is not only crucial to your success, but also to industrial land development in Southern Nevada as a whole,” Governor Brian Sandoval responded to Faraday. “The surety bond of approximately 75 million dollars which Faraday will acquire is a vital component to the bond issuance.”