AZ State Senator TJ Shope recently published the piece below in the Phoenix Business Journal. Shope highlighted Arizona’s recent successes attracting new EV companies driving advanced manufacturing jobs for the state.
The piece originally ran on May 18, 2021 and can be accessed here.
Electric vehicle makers aren't choosing Arizona by accident; let's keep it that way
By Thomas “TJ” Shope
May 18, 2021, 3:01pm EDT
Arizona has long been a favored location for advanced manufacturing, with tech companies like Boeing, Intel, Footprint and others manufacturing everything from medical devices and space vehicles to semiconductors and plant-based materials here. In the past few years, Arizona has begun to attract a new and important category of manufacturers — those in the advanced vehicle industry — as companies including ChargePoint, Waymo, Lucid Motors, and Nikola Corp. have set up operations. These companies are developing and manufacturing products in Arizona that represent innovative technological breakthroughs that are changing the world, and they are creating tens of thousands of high-paying manufacturing jobs here at home.
The recent announcements by Electrica Meccanica, a designer and manufacturer of electric vehicles, and UACJ Automotive Whitehall, which manufactures electric vehicle components, to bring their operations to Arizona cements this state as a hub of next generation transportation innovation and manufacturing. As Gov. Ducey pointed out, “Arizona has fast become the electric vehicle center of America thanks to our robust and growing workforce, vibrant innovation ecosystem, and ideal business environment.”
This is great news for people excited about clean energy and looking for more EV options of course, but it is also great news for Arizona’s workforce and economy.
Big investments
UACJ plans to invest $60 million in northern Arizona. Its manufacturing operation in Flagstaff will bring 120 high-paying jobs to the region in the first year and up to 350 jobs within five years, with an average wage that is 60% higher than the county per capita income. Calling the announcement a “historic investment for Northern Arizona and our entire state,” Sandra Watson, President and CEO of the Arizona Commerce Authority, noted that, “UACJ Whitehall will further bolster Arizona’s reputation as a global hub for electric vehicle manufacturing.”
The same is true for the new Electrica Meccanica facility in Mesa, where the company plans to ramp up production on its new flagship SOLO EV. The facility, which will include both a light vehicle assembly plant and a state-of-the-art engineering technical center with multiple labs for research and testing workshops, will be able to produce up to 20,000 vehicles per year and will create up to 500 new jobs once fully operational.
It’s not surprising that more tech companies like UACJ and Electrica Meccanica are choosing to call Arizona home. Our culture of innovation and entrepreneurship, vibrant workforce and business-friendly environment create opportunities for strategic investment that bring jobs and capital to the state.
This is not by accident. Arizona’s leaders and policymakers have prioritized economic development, ensuring the state is positioned to meet the needs of the tech and advanced manufacturing industries.
Policy framework
But part of their success is also certainly due to having a policy framework that supports technology, innovation, and advanced manufacturing. As Arizona’s policymakers continue to engage on energy policy — whether to modernize clean energy goals, encourage more widespread adoption of energy efficiency measures, create an integrated statewide EV infrastructure plan, or fund programs that enhance the talent pipeline from Arizona’s higher education system into advanced manufacturing and tech jobs — it is essential that policymakers take a careful and mindful approach.
I recently sponsored legislation (SB 1291) that is critically important for advanced vehicle manufacturers, who are building and deploying innovative vehicle technologies here in Arizona. The bill creates parity between battery-electric/fuel cell electric vehicles and natural gas vehicles and it provides needed uniformity between state and federal policies, which is critical for market certainty. The bill passed with overwhelming support in both the House and Senate and Gov. Ducey quickly signed it into law, demonstrating yet again his commitment to Arizona’s tech manufacturers and ensuring Arizona is a hub for innovation.
Just as good policy will continue to encourage tech companies to locate here in Arizona, bad policy will encourage them to look elsewhere.
Arizona Sen. Thomas "TJ" Shope, a Republican, represents District 8.