Tesla is nearing an agreement to open a roughly 100K SF service center near the southwest corner of the Loop, a boost to the city’s aim to establish itself as a national energy hub.

The maker of electric cars is close to a deal for an industrial building at 717 South Desplaines St., Crain’s Chicago Business reports. If Tesla reaches an agreement, it would likely convert the existing building on the site into a service and maintenance facility for its vehicles, the second of its kind in the city.

The only Tesla service center in the city currently is on Elston Avenue in Avondale. It was sold in 2021 to a Miami-based investor for $13.1M, according to Crain’s. The carmaker also has showrooms in the Gold Coast and just north of Fulton Market.

A venture led by 601W Cos., a New York-based developer, bought the Desplaines Street property for $34M in 2018, Crain’s reported. Previous owners of the property, Sterling Bay and Ascent, once planned to convert it into a data center, but those plans fell through, Crain’s reported.

Plans for the new center come as the city and state take steps to supercharge the region's status as an energy destination.

In September, Chinese battery-maker Gotion inked a deal for a $2B EV lithium battery manufacturing plant in Manteno, about 50 miles outside the city. The plant, located on a roughly 150-acre site, is expected to spur 2,600 new jobs and is slated to begin production in 2024.

Chicago Mayor Brandon Johnson and Illinois Gov. J.B. Pritzker last month announced the formation of the Chicagoland Climate Investment Alliance, a multiparty effort to support the commercialization of climate technologies and address climate challenges through technology and innovation.

The priorities of the alliance include creating an “interconnected climate innovation ecosystem,” funding local startups and making substantial climate investments, according to the release. The alliance will also work to get federal funding, including a $1B grant from the Environmental Protection Agency's Clean Communities Investment Accelerator.