LAS VEGAS—Electric-autonomous-vehicle manufacturer Nuro is investing $40 million in an end-of-line manufacturing facility and a closed-course test track to commercialize and scale production of its third-generation vehicle, the R2.

“This is a significant moment for Nuro," says Jiajun Zhu, Nuro co-founder and CEO. "Building on our tremendous momentum—including strategic partnerships with industry leaders such as Domino’s, Kroger, and FedEx and operations in three states—we are now able to invest in the infrastructure to build tens of thousands of robots. “We greatly appreciate the state’s leadership in working with us to finalize this partnership. The decision to place these facilities in Southern Nevada was an easy one.”

The production facility has the capacity to manufacture tens of thousands of delivery vehicles, thereby enabling the company to meet present and future demand for its vehicles. Encompassing more than 125,000 square feet of space and 80 acres of property development, the new commercial facility will allow Nuro to quickly manufacture its electric delivery autonomous vehicles in the coming years with help from BYD North America.

BYD will deliver an assembled-in-America electric vehicle platform that Nuro will transform into innovative autonomous vehicles. Nuro will design, develop, and operate all software and digital infrastructure from United States-based servers to ensure safety and privacy.

Nuro’s investment in the Southern Nevada community is estimated by the Nevada Governor’s Office of Economic Development to generate $2.2 billion in economic impact during the first 10 years of operation. This investment will also create an initial 250 highly skilled career opportunities. To fill these roles, Nuro is looking to partner with local universities, community colleges, and career training programs to build a talent pipeline specifically targeting individuals traditionally underrepresented in current technology roles.

Automated delivery vehicles are a vital step towards reducing traffic fatalities caused by human-driven vehicles. Nuro will be taking over 74 acres of the Las Vegas Motor Speedway to build a world-class, closed-course testing facility that will allow sophisticated development and validation of its autonomous on-road vehicles. The testing track will measure bot performance in a broad range of scenarios, from avoiding pedestrians and pets to giving bicycles space on shared roadways, as well as environmental tests and vehicle systems validation.

Construction on the production facility is expected to be completed in 2022. Both facilities are expected to be fully operational in 2022.