California awards $120 million in tax credits to eight companies, fueling $15.5 billion private investment boost

California Construction News staff writer

The State of California is awarding $120 million in tax credits to eight companies, part of the California Jobs First program. The awards are expected to attract about $15.5 billion in private investment over the next five years.

“California’s economy is the fifth largest in the world, and we’re supporting workers and businesses as they reach success,” Gov. Gavin Newsom said in a statement. “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.”

Controlled Thermal Resources plans to construct a facility near the Salton Sea to sustainably extract lithium and other critical minerals in Imperial County and position California as a global hub for battery production, crucial for securing a clean energy future. 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.

Pacific Steel, receiving a $30 million tax credit, is set to construct the state’s first steel mill in over half a century in Kern County. This endeavor is anticipated to generate nearly 450 new jobs and involve capital investments exceeding $540 million.

Moxion Power and Paired Power are among the recipients advancing battery energy storage systems critical to meeting the state’s climate goals. Moxion Power will expand its manufacturing capabilities in Richmond and Los Angeles, while Paired Power will grow its operations in Campbell and the Central Valley. Collectively, the companies are expected to make about $130 million in capital investments.

Tau Motors, specializing in advanced technologies for electric vehicles, will expand its R&D capabilities in Redwood City. In exchange for a $7 million tax credit, the company will create more than 150 new jobs and invest nearly $60 million.

MicroVention, based in Aliso Viejo, will focus on developing medical technology products, while Elve, headquartered in Davis, will expand manufacturing capacity for wireless communication networks.

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.