According to official figures in the US, more than 200,000 fully electric vehicles (EVs) were sold in the country in the first quarter of 2022. 

Forecasts suggest that by 2035, nearly half of all new car sales in the US will be electric vehicles. 

Global car manufacturers have announced their plans to spend about $515bn on EV manufacturing by 2030. 

This financial commitment strengthens the market and ensures the need for companies to build additional EV manufacturing plant operations to fulfil that commitment. 

Arizona ranked highly in US EV usage 

Ranking seventh among US states for EV usage, Arizona records four EVs registered for every 1,000 residents. 

When it comes to the best place to set up an EV manufacturing plant in the US, Arizona continues to be an attractive option.

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In January 2023, Nikola Corporation announced that its battery manufacturing operation would be relocating from Cypress, California to its production facility in Coolidge, Arizona, further demonstrating the state wide EV manufacturing growth.

As leading industry names are increasingly selecting the state for new operations, facility expansions or additional production options, EV manufacturing is thriving.

As it emerges as an EV sales and manufacturing hub for the US and international markets, Arizona boasts EV operations from major industry players including Lucid, Polestar, Rivian, Tesla and Atlis Motor Vehicles, which have all set up operations in the state.  

Phoenix emerges as major hub for EV companies 

As the EV industry continues to grow, Phoenix and the surrounding area have become the de facto state hub of US EV manufacturing. 

Alongside the big name investments and operation expansions, Phoenix also benefits from a recently announced US Departments of Transportation and Energy initiative. In 2022, nearly $5bn was made available to states, including Arizona, across a five-year period.

The Infrastructure Investment and Jobs Act is designed to bring new EV manufacturing businesses to Arizona and create thousands of jobs in the sector.  

Forecasts are suggesting that about $76.5m of the fund will be allocated to the Arizona economy, which is earmarked to help create a national EV charging network.  

According to official industry statistics, Arizona is ranked seventh in the US for the number of public charging stations, and seventh in EV ownership.  

With this in place, Phoenix can lay further claim to being the best place to set up an EV manufacturing plant in Arizona, as the state cements its industry-leading position. 

Electric valley driving growth for EV manufacturing in Arizona 

Coined in a recent industry conference, ‘Electric Valley’ has come to define the region that is home to a cluster of EV manufacturing and production companies in the US, and Arizona is very much part of this area.

As director of economic development for Mesa, Arizona, Bill Jabjiniak continues to showcase and promote the region’s credentials as the best place to set up an EV manufacturing plant in the US. 

“There’s this feeling that this section of Ray Road is becoming a technology hub centred on EVs, which is exactly what we want,” he says. “There’s also a tier-one supply base here, with engineering firms and suppliers that are coming too.”  

Companies expanding EV manufacturing operations in Arizona 

In addition to the presence of Tesla, Lucid Motors, Nikola, numerous smaller EV-related manufacturing firms are locating in Electric Valley to take advantage of the strong sector in Arizona.  

Li-Cycle, a battery recycling company, has announced a new manufacturing investment for a facility in Gilbert, Arizona, further strengthening the EV battery production capacity across the state and in the south-western region.   

The year 2022 saw the announcement of a 590-acre EV manufacturing plant facility based in Casa Grande, Arizona, designed specifically to house the production and assembly of the new air luxury sedan EV range.    

EV ecosystem stimulating job creation and sector surge 

With this exciting and expanding EV manufacturing ecosystem, the industry continues to create more jobs and greater economic stimulus.   

Increasing numbers of employees are being employed directly to manufacture vehicles, ensuring growth in jobs for technical workers in the sector as Electric Valley continues to expand.  

Beyond this, manufacturing EVs creates residual employment with expansions and investment being seen in subsectors including battery technology production, overall infrastructure and the attendant supply chains.   

When considering the best place to set up an EV manufacturing plant, Arizona has cemented its reputation as a hub for the sector and is established location in this growing industry.  

Information from Data and Statistics from Statista, Arizona Chamber of Commerce, US Census Bureau and Arizona Commerce Authority.