As rising fuel prices drain the wallets of commuters statewide and nationally, Electric car (EVs) look even more attractive than in the halcyon days when a gallon of gas was under $3. Pinal County aspires to become the Detroit of electric vehicles.
However, many EV options run counter to the “affordable” label, and the limited availability of Tesla, one of the largest brands in the market segment, often puts consumers at a premium. are at the bottom of a long waiting list.
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That said, all signs point to the continued electrification of the automotive industry. On August 5, 2021, the Biden administration released statements from three major automakers.
“Today, Ford, [General Motors] and Stellantis have announced a common goal of achieving 40-50% of annual U.S. sales of electric vehicles (battery electric, fuel cell and plug-in hybrid) by 2030, and are committed to making the country consistent. closer to a zero-emissions future. Paris climate targets. Our recent product, technology and investment announcements highlight our joint commitment to leading the transition to electric vehicles in the United States. “
demonstrate leadership
With the Build Back Better Plan seemingly over, some federal provisions have stalled, such as incentives to expand electric vehicle manufacturing and supply chains in the United States, but automakers are We are still making progress.
“The same talking points are shared between the industry, state and federal levels. They are all connected and I think that is the biggest sign of commitment and capability. In a discussion, Britta Gross, Managing Director of the Rocky Mountain Institute and Orlando Public Utilities Commissioner, said, “And we’re not sure if it’s coming in big numbers in 2025, 2028 or 2030. are debating between
Cities across the United States continue to race to benefit from its growth, as EVs will inevitably become a significant part of auto sales in the next decade. Gross, who worked for GM for nearly 20 years, said automakers consider many factors when choosing where to locate manufacturing facilities, including the business environment and land availability. says that
“But colocation and proximity are also important,” says Gross. “Collocation is a big deal for automakers because it means they have access to the workforce and the right skill sets. Proximity saves costs. It’s cheaper to move test vehicles, batteries, etc. In addition to automobiles and batteries, there is also a great need for domestic charging infrastructure.For all these guys, don’t miss out on these great opportunities [components] Sent from Arizona to charging equipment because today most of it comes from overseas. ”
The EV industry has its roots in Arizona, with companies such as UACJ Whitehall manufacturing parts for EVs in Flagstaff, KORE Power manufacturing batteries in Buckeye, and ElectraMeccanica manufacturing single-seat EVs in Mesa.
the city of Pinal County The electrification of vehicles has also benefited, with several major facilities choosing the region to position themselves as EV power plants for the next few years.
Pinal County Picking
On November 29, 2016, Governor Doug Ducey and Lucid Motors announced that the company had selected Casa Grande after a nationwide survey across 13 states and 60 sites. At the time, more than 2,000 new jobs were created and the facility was projected to generate more than $700 million in capital spending by 2022. Then, in 2021, Lucid announced his 2.85 million expansion of the Casa Grande manufacturing plant. square feet. Increased capacity will create approximately 6,000 direct jobs with an economic impact of over $100 million by 2030.
About two years after Lucid first decided to locate in Casa Grande, another EV maker chose Pinal County. Nikola’s 1 million square foot facility on 430 acres in Coolidge manufactures electric semi trucks with the goal of transforming the transportation and logistics sector. At the plant, he plans to produce 2,500 trucks in 2022, increasing to 20,000 trucks per year once Phase 2 of the facility is complete.
“With the expansion of Nicola and Lucid, we feel we are becoming the epicenter of electric vehicles. Certainly in Arizona, if not nationally,” said Pinal County Director of Economics and Workforce Development. says James Smith. Additionally, companies such as Lucid and Nikola are doubling down on investments in Pinal County, allowing other companies to take advantage of the forming industrial cluster.
The recent launch of LG Energy Solutions’ cylindrical battery factory in Queen Creek is an example of this dynamic. The batteries produced at this plant will provide high-density, compact energy storage that is ideal for electric vehicles. The $1.4 billion facility, the first of its kind in North America, will employ up to 2,800 people.
Sandra Watson, president and CEO of the Arizona Commerce Authority (ACA), explains: “Arizona offers the best business environment in the country. We are fortunate to have great leaders like Governor Ducey who are creating the conditions for this type of investment. [that] You can market and sell Arizona in ways others can’t. “
A well-rounded and comprehensive strategy, not just focusing on incentives but also investing in modern infrastructure, ensuring affordable energy and enforcing non-intimidating regulations, will help companies reside, Watson said. Most important to attract those businesses that benefit the community. However, ACA has other tools to attract businesses large and small.
“We manage all financial programs for economic development in Arizona. There are tax credits we can offer. [and] Tax policies shared with businesses to better educate them on how to calculate [potential] Tax benefits,” Watson continues. “What our legislators have done in Arizona is to look at opportunities that promote business growth in a fair and equitable way. And that means establishing programs that apply to all businesses. To do.”
Workforce wish list
When a company looks for a candidate site, several criteria are considered in the decision to start construction at one location at another. Pinal County benefits from access to two major interstate highways and the Union Pacific highway, as well as proximity to California ports and the Mexican border. Tax incentives are another carrot available to economic developers, but ultimately companies need access to their most valuable asset: their employees.
Richard Wilkie, director of economic development for the City of Casa Grande, explains the importance of having a talent pipeline in place when manufacturing electric vehicles in Pinal County. “[Lucid] is a start-up company and wanted to make sure we made the right decisions about where to put it. They spent months looking at the workforce,” he says. “They estimate over 6,000 people are working. [Lucid] We wanted to ensure that not only our immediate needs but also our company’s future needs could be met, and we concluded that we had the best workforce anywhere in Arizona. “
Pinal County is located between two major research universities, Arizona State University and the University of Arizona, so EV manufacturers have a constant supply of college-educated talent. Not only that, but as these companies continue to flock, new entrants can tap into an existing workforce pool that already has the skills needed for the job.
Recognizing how vital a highly skilled workforce is to economic growth, state leaders opened Drive48 in Coolidge last year.
“Drive48 was developed with a strong focus on collaboration, bringing together community college systems and industry leaders to develop specific vocational training opportunities to accelerate and enhance workforce training across Arizona.” says Watson. “This is an important opportunity to showcase to industry across the nation that Arizona is working together to secure the talent it needs to succeed.”
The partnership between the state, Pinal County, Casa Grande and Central Arizona College is already paying off. Watson says his 1,700 workers in Pinal County have already been trained, which has allowed Lucid to meet production schedules. Her goal is to build six more of these state-of-the-art facilities statewide.
“[Drive48] It’s fully leveraged by Lucid,” adds Wilkie. “They do different types of training in something called a dojo, which is basically another classroom. increase.”
Watson concludes: He got other states and labor groups to talk about how they were able to establish themselves. [Drive48]I think many of these will be replicated across the country. Because that’s what the future of workforce training will look like. “
