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WHAT YOU NEED TO KNOW: From building a sustainable lithium production campus to constructing California’s first steel mill in over 50 years, the state is investing $120 million in innovative businesses and creating thousands of new jobs.
SACRAMENTO – As part of the California Jobs First initiative, Governor Gavin Newsom today announced that the state has awarded $120 million in tax credits to eight innovative companies. It will generate more than 2,100 full-time jobs with an average annual salary of over $100,000 and bring in an estimated $15.5 billion in private investment over the next five years.
WHAT GOVERNOR NEWSOM SAID: “California’s economy is the fifth largest in the world and we’re supporting workers and businesses as they reach success. This funding will help businesses create good-paying jobs — from steel manufacturing in Kern County to sustainable lithium production in Imperial Valley — and support the state’s economic dominance for years to come.”
The funding, from the Governor’s Office of Business and Economic Development’s (GO-Biz) California Competes program, is going to companies expanding their operations in California and supporting the type of cutting-edge industries that are the hallmark of the Golden State.
“California Competes continues to be a critical program within the California Jobs First portfolio that attracts and retains businesses, who in turn create family-supporting jobs and economic opportunity for workers across our state,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz. “We’re excited to build on the success of this program, investing in companies that are building the industries of today and tomorrow.”
🔋SECURING THE EV BATTERY SUPPLY CHAIN
Lithium Valley is on track to become one of the world’s largest sources of lithium, the essential material for EV batteries – positioning California to be a global hub for battery production and a leader in securing a clean energy future.
Controlled Thermal Resources received a $30 million tax credit to help construct a facility near the Salton Sea to sustainably extract lithium and other critical minerals from geothermal brine in Imperial County.
In exchange for this tax credit, the company is expected to make capital investments of more than $14.7 billion and create nearly 450 new, full-time jobs in Calipatria and Imperial.
Governor Newsom at Controlled Thermal Resources last year
⛏️ CONSTRUCTING THE STATE’S FIRST STEEL MILL IN OVER 50 YEARS
Pacific Steel, which is poised to construct the first steel mill in California in more than 50 years, received a $30 million tax credit to hire employees and invest in manufacturing equipment as part of its expansion in Kern County.
In exchange for this tax credit, the company is expected to make capital investments of more than $540 million and create nearly 450 new jobs.
⚡DEVELOPING NEXT-GENERATION ENERGY STORAGE SYSTEMS
Two California businesses will be advancing their efforts to design and manufacture battery energy storage systems – a technology that is critical to ensuring the state meets its world-leading climate goals.
Moxion Power, which develops mobile energy storage products and technologies that accelerate last-mile electrification, received a $25 million tax credit to expand its manufacturing capabilities in both Richmond and Los Angeles.
Paired Power, a commercial solar and battery energy storage system manufacturer, received a $3.5 million tax credit to expand its operations in Campbell as well as the Central Valley.
Collectively, these two companies will make nearly $130 million in capital investments and create more than 540 new, full-time jobs across California.
Governor Newsom at Moxion last year
🚗DESIGNING THE ELECTRIC MOTORS OF THE FUTURE
Tau Motors received a $7 million tax credit to further its R&D capabilities in Redwood City as it continues to partner with leading automakers, suppliers, and industry to rapidly design and deploy advanced technologies across a wide range of platforms and powertrains. In exchange, they will create more than 150 new jobs and invest nearly $60 million.
BIOTECH AND MORE
List of Awards and Funding
Last month, Governor Newsom announced the creation of the California Jobs First Council focused on streamlining the state’s economic and workforce development programs to create more jobs, faster – including through the California Competes program.
The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2028. To date, California Competes has awarded tax credits to nearly 1,200 businesses, creating more than 158,000 jobs, and resulting in $50.5 billion of private investment in the state.
California’s economy is the 5th largest economy in the world. California, which has the most equitable tax system in the entire country, is #1 in the nation for new business starts, #1 for access to venture capital funding, and the #1 state for tourism spending, manufacturing, high-tech, and agriculture.
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Copyright State of California
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