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Nevada and Lithium:

http://en.wikipedia.org/wiki/Silver_Peak,_Nevada

If the goal is to reduce the cost of production, nevada has a terrific 'local' source of lithium, which probably counted for something.

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Cheap geothermal and solar power. No state income tax. Close proximity to aerospace and defense employees and vendors. Reasonably close to Tesla. And, yes, close to major lithium deposits.

And, to remind everyone, Musk actually called various mining operations directly and secured some very good deals.

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