Projects Generate $120 million in Economic Activity, Support 12,000 jobs; Includes Production of Zero-Emission Vehicles, Lithium Batteries, Semiconductors 

July 19, 2023 - SACRAMENTO –  State Treasurer Fiona Ma today announced the approval of $91.3 million in sales and use tax exclusion (STE) incentives for 26 California manufacturing projects. The projects approved by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), chaired by Ma as state treasurer, support the production of zero-emission vehicles, lithium batteries, and semiconductors, among other uses, and are estimated to support nearly 12,000 jobs and provide a net benefit of nearly $120 million to California’s economy.

"This program is a textbook example of how to drive strategic policy priorities and economic activity through targeted financial incentives and investments," said Treasurer Ma. "CAEATFA’s STE program supports tens of thousands of jobs and generates millions of dollars for California’s economy each year, while also helping California meet its most ambitious climate goals. These recipients reflect the innovation and creative spirit of the Golden State and highlights the magnetism that attracts cutting-edge companies to California."

The 26 projects awarded this week include:

• Aptera Motors Corp., San Diego County – Upgrades to its solar electric vehicle manufacturing facilities.
• Exovix Corporation, Alameda County – Expansion of its lithium-ion battery manufacturing facilities.
• Applied Materials, Inc., Santa Clara County – Upgrades to lithium anode production facilities.
• Hell’s Kitchen LithiumCo 1 LLC, Imperial County – Construction of a new lithium recovery and processing facility.
• Nanoshift LLC, Contra Costa County – Construction of a new semiconductor manufacturing facility
• HC (Contra Costa), LLC, Contra Costa County – Construction of a new hydrogen production facility.

CAEATFA approves $115 million dollars in STE annually in up to three application rounds. The program is consistently oversubscribed, highly competitive, and usually exhausts its STE allocation before the third application round. Projects are scored on a variety of criteria including whether or not the company is headquartered in California, the project’s impact to the environment, its ability to create jobs and spur economic activity, and its categorization as an emerging strategic industry.

STE awards are approved during three application rounds annually. For 2023, the first round was held in January, with awards announced today. Remaining STE allocation will be awarded through additional application periods held over the summer and fall, and awarded in the fall and winter, respectively.

To learn more about CAEATFA and the STE program, visit bit.ly/CAEATFA-STE
To learn more about the 26 projects receiving STE, visit bit.ly/CAEATFA-Meetings

Source: CA. Treasures Office