Foreign Direct Investment (FDI) in Nevada

Foreign direct investment (FDI) plays an extraordinary and growing role in Nevada business.  It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong impetus to economic development.

Nevada has been in the forefront of renewable energy, and its abundant natural resources have captured the attention of international investors in Spain, Italy, Israel and China.  These countries have sited significant energy production and manufacturing facilities in the state.  Currently, there are more than 200 foreign-held firms with operations in Nevada. 

To learn why these companies have chosen to invest in Nevada, download Why Nevada? a comprehensive brochure which outlines the advantages of conducting business in Nevada.  For a brief overview of Nevada's competitive advantages in Chinese, click here.

Recent FDI in Nevada

Looking at the Foreign Direct Investment (FDI) coming into Nevada announced between 2008 and 2010, the most significant was that announced by China. The primary reason that FDI interest increased from China is that in September, 2009, Lt. Governor Brian Krolicki signed a Memorandum of Understanding (MOU) with the Chinese Investment Promotion Agency (CIPA), part of China’s Ministry of Commerce, to encourage Chinese investment into Nevada specifically in the areas of renewable energy, mining, agriculture and tourism/conventions.

A significant public announcement about Chinese FDI coming into Nevada was made in March, 2010, by A-Power Systems on establishing a wind turbine manufacturing facility for the U.S. market.  The Southern Nevada-based 340,000-square-foot manufacturing facility will employ 1,000 people at an initial investment of $344 million.

In September, Canon Investment Holdings announced the purchase of a controlling interest in Altair Nanotechologies, providing $48.9 million in proceeds to fund the contemplated establishment of a lithium-titanate manufacturing facility in China and Altair's working capital requirements and operations in the United States.

Under a separate conditional supply and technology license agreement, Altair has agreed to sell to Canon affiliate Zhuhai Yintong Energy Co., Ltd. (YTE) an ALTI-ESS 1 Megawatt system, battery cells, and its proprietary lithium-titanate material to be used in the production of battery cells in China.  The agreement provides up to $6.6 million in revenue to Altair by the end of 2011 including an advance of $2.0 million for lithium-titanate at the time of signing.

The FDI figures for the period exclude Nevada gaming property or stock investments which exceeded $8.3 billion.  Dubai World invested $2.7 billion to gain a 50 percent interest in City Centre and put $2.4 billion into MGM Mirage stock. Elad Properties of Israel invested $1.2 billion for the 40-acre New Frontier property.  Australia-based entertainment giant, Crown Ltd. invested $1.8 billion in Cannery Casino Resorts for a 24 percent share.  Crown also bought a 20 percent stake in Fontainebleau on the Strip for $250 million, and purchased the former Wet ‘n Wild site for $22.5 million.