An electric car company in the city of Fort Worth, Texas, is about to place the town on the map as a technological hub. This company believes that it can work to change the electric motor industry drastically. Thus they are about to be awarded a $70Million city grant on research and development.
The founders of Linear Lab Bard and Fred Hunstable have an enthusiastic plan for its future. By 2030 they plan to have employed from 100 to 3000 employees and also build a 100,000 square foot factory similar to Alliance Texas mobility innovation zone. Currently, the company has an 11,000 square-foot lab in Fort Worth as well as in their factory in Mexico.
Linear Lab’s focus is on the development of cheap, powerful electric motors that will shift the market with more affordable scooters and electric bikes. The powerful electric motors aim tp power the scooters and electric bikes up steep hills and also give them an extended range.
According to Robert Sturns, the city’s economic development director, the new technology offered by Liner labs will likely disrupt the market. He truly believes that the technology will put Fort worth as a significant player in the market.
Developing the high-tech electric motor is quite costly. Still, with the help of negotiations between the company and the city, an incentive deal does help cover the cost of development by netting Linear labs $68.9 million in a 15year period. Sturns states that Linear Labs must also play a part as they are required to invest 614 million in the research as well as development over a 10year period. In eight years, Linear labs expect to employ 1200 full-time employees with an average salary of about $75000, though many employees will earn more.
In the deal, the company must invest $4million into the facility that it leases. American Airlines maintenance facility at the Interstate 35 as well as Heritage Trace Park are facilities under consideration by the company though the company might consider other locations. An approval from the council is paramount. To this effect, Councilman Dennis Shingleton said that it would be a strategic mistake by not endorsing this project and giving support to the project and its technology.
Shingleton said in a City Council briefing that he did not fully understand the ‘idiosyncrasies’ proposed between the Linear labs and the City council. This statement cause uncertainty on whether he was referring to Linear labs’ technology or the incentive package. They are a bit complex.
The most straightforward description of the companies electric motor design is the ability to generate high torque as well as the production of energy at meager speed. According to Hunstable, this design is the most significant discovery in the electric motors in 100 years. Compared to the traditional magnet motors, the newer electric motors are capable of two times the torque. A 10% range increase is expected for electric vehicles, high efficiency in HVAC units, as well as light, powerful wind turbines, said the company.
The company aims to employ highly skilled labor such as software engineers, electric, robotic engineers, as well as technicians who work alongside robots in a factory with an average wage of above $90,000, according to Hunstable. Hunstable aims to build next Siemens or the GE in Fort Worth and position the city on the center of global new electrification.
The incentive package is quite tricky. Liner labs will not receive the grant basing on investment in property; instead, it will the grant as reimbursement for the cost of being able to invest in development and research. Well, according to Sturns, the company can sell the tax credit to third parties, but to qualify, Linear Labs should invest in $2billion of new taxable property. In the whole of the US, Fort Worth might be the first city to utilize such a tool.
The novel incentive could be a tool used to lure companies looking to relocate from areas that are walloped by the coronavirus or re-shore factories, according to Mayor Besty Price.