Let’s Safeguard Arizona’s Thriving EV Industry Funding!

Arizona’s business landscape is thriving, with 2024 poised to be a standout year for economic growth. The state benefited significantly from over $205 million in federal funding through the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), aimed at bolstering its electric vehicle (EV) and battery sectors. However, the future of this vital funding is now uncertain.

The continuation of these federal investments is crucial. They promise to drive record private investments and job creation within Arizona’s clean transportation sector. Clean vehicle technologies are becoming integral to the industry, highlighting the need for proactive policy decisions from Arizona’s business community and government leaders.

A key facet of this funding is Arizona’s $76.5 million from the National Electric Vehicle Infrastructure (NEVI) program. These resources will establish a statewide public EV charging network, initially focusing on interstates and then expanding to state highways. A recent CHARGE alliance report indicates nearly 4,000 public charging ports are already in operation at over 1,000 locations across Arizona, with more to come, facilitating opportunities for local vendors and job creation.

This expansion of EV infrastructure not only benefits drivers but also the state’s economy. The NEVI investments could generate around 160,000 jobs across the U.S. over the next eight years. This emerging sector offers diverse employment opportunities, including roles in electrical installation, maintenance, and civil engineering. Additionally, proximity to charging stations is expected to boost foot traffic for nearby businesses, according to research from MIT and other institutions.

While adoption of clean transportation technology increases globally, concerns remain about inadequate charging infrastructure. NEVI funding aims to mitigate these issues. Moreover, stringent uptime requirements of 97% assure users of a reliable charging experience, alleviating fears of malfunctioning stations.

Federal funding is not limited to EV charging; it also supports the growth of Arizona’s battery manufacturing sector. At least eight battery facilities are currently planned or under construction, leveraging incentives from the IRA. As concerns grow about lithium-ion batteries in landfills, over 95% of their materials can be recycled, thus placing Arizona at the forefront of the circular economy with active and incoming recycling plants in the state.

To date, Arizona has attracted $12.75 billion in clean energy investments, ranking eighth nationally. Sustained funding from BIL and IRA is vital for solidifying Arizona’s leadership in the global EV supply chain. However, funding cuts threaten crucial developments in towns like Casa Grande.

The hope is that Arizona’s business leaders and elected officials come together to safeguard programs and funding essential for nurturing the state’s clean economy.

Steven G. Zylstra serves as president and CEO of the Arizona Technology Council, representing over 750 science and technology businesses throughout Arizona.