Arizona Leads the Charge in Energy Innovation Revolution, Powered by IRA

The Inflation Reduction Act (IRA) has catalyzed significant investments in Arizona, strengthening the state’s role in clean energy innovation and advanced manufacturing as 2024 approaches. The Arizona Technology Council observes these developments closely, witnessing firsthand the transformative impact of these investments on the local economy.

Since the IRA was enacted in 2022, Arizona has secured over $11.8 billion in clean energy investments, ranking among the top states in this sector. These initiatives are anticipated to generate more than 18,000 jobs across a range of industries, including solar and electric vehicle (EV) production. Companies such as KORE Power, Lucid Motors, and JA Solar highlight how federal policies empower local businesses and reinforce Arizona’s status as a national clean energy leader.

KORE Power’s upcoming KOREplex facility in Buckeye stands as a testament to this momentum. This 1.3-million-square-foot lithium-ion battery manufacturing site is set to create approximately 3,000 jobs when production starts in 2025. It will benefit directly from IRA incentives aimed at bolstering domestic clean energy initiatives, reflecting the Act’s real-world impact.

The automotive sector is thriving as well. Lucid Motors, a pioneer in the EV market, has capitalized on the IRA’s incentives to enhance its growth. Consumer tax credits and grants have made EVs more affordable, facilitating an expansion to meet growing demand.

Moreover, solar and battery manufacturing are flourishing. JA Solar is significantly contributing to Arizona’s solar panel production, leveraging IRA support for renewable energy technologies. In Tucson, the American Battery Factory is investing over $1.2 billion in a gigafactory, poised to generate 1,000 jobs while producing vital battery systems for renewable energy storage, with operations expected to commence in 2025.

The IRA lays a solid groundwork for a sustainable future in Arizona, contingent on continued bipartisan backing. The Arizona Technology Council is dedicated to supporting local businesses as they navigate growth in the state’s tech landscape, while emphasizing the importance of these investments for long-term economic vitality and technological leadership.

As Arizona capitalizes on the benefits of this transformative legislation, efforts will persist to inform all residents of the IRA’s significance in promoting economic growth, energy independence, and environmental sustainability.

Steven G. Zylstra serves as the president and CEO of the Arizona Technology Council and the SciTech Institute.