Nevada lawmakers frustrated by Tesla’s Mexican lithium deal

LAS VEGAS — Electric carmaker Tesla has announced that it will obtain lithium for its batteries from two companies in northern Mexico, leaving Nevada lawmakers who approved major tax incentives for the company frustrated.

In 2014 the Nevada Legislature approved $1.3 billion in tax incentives for Tesla’s Reno gigafactory.

The Las Vegas Sun reports that during legislative debates over the incentive package, there was speculation that Tesla would boost the state’s lithium industry and purchase Nevada goods, but lawmakers are now saying they feel misled by the company.

Tesla founder Elon Musk says the deal with Bacanora Minerals and Rare Earth Minerals is not exclusive and that criticism for going outside of Nevada is unwarranted. He says Tesla is pursuing sources of lithium in the state.