Let’s protect Arizona’s supercharged EV industry funding

Every year is a good year for doing business in Arizona, but 2024 was exceptional even by Grand Canyon State standards. One of the key ingredients for this success was the more than $205 million in federal funding delivered through the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) to support Arizona’s burgeoning electric vehicle (EV) and battery industries. Now, the future of this funding is in question.

If continued, these federal dollars could continue to catalyze record-setting levels of private investment and job creation in the state’s growing clean transportation sector. It’s clear to many that clean vehicle technologies are here to stay, and we need Arizona’s business community and state and federal leaders to go to bat for smart policy decisions and investments like these.

One critical piece of investment is Arizona’s $76.5 million allocation of federal funds from the National Electric Vehicle Infrastructure (NEVI) program. This money will go toward building a statewide network of public EV charging stations — first on the interstates then on state highways. According to a recent report from the CHARGE alliance, nearly 4,000 public charging ports are available at more than 1,000 locations across the state and many more are on the way, thanks to these investments. This means more contracts for local vendors and more shovels in the ground.

That’s not just good news for EV drivers — it’s great news for Arizona’s business community. NEVI investments have the potential to create about 160,000 jobs across the U.S. in the next eight years. This is a brand-new employment sector, with opportunities for Arizonans in electrical installation, maintenance and repair, safety, vandalism prevention, planning and design, siting and civil engineering, equipment assembly, general construction, administration, and more. Moreover, according to researchers from the Massachusetts Institute of Technology and other universities, businesses near these charging stations will benefit from increased foot traffic of patrons charging their vehicles.

With clean transportation technology a growing global economic pillar of many leading countries, EV ownership is steadily increasing. But some people still aren’t sure it’s for them, citing a lack of charging infrastructure as a reason to wait. NEVI funds can remove that barrier. And for the EV owners who already know how much of a headache it can be to find a charging station that is out of service, NEVI funding comes with strict 97% “uptime” requirements, ensuring that the next generation of charging stations will be more reliable.

EV charging isn’t the only area where federal funding will help Arizona’s technology sector excel. At least eight battery plants are planned, under construction or operating here, taking advantage of the federal tax credit for advanced manufacturing in the IRA. Despite early concerns about these lithium-ion batteries ending up in landfills, more than 95% of the materials in a lithium-ion battery can be effectively recycled. That’s why Arizona is also becoming a leader in the new circular economy, with one lithium-ion battery recycling plant operational in Phoenix and two more on the way. We’re well-positioned to dominate the entire lifecycle of EV batteries, taking care of our waste from the cradle to the grave.

Across Arizona, new clean energy projects already have spurred $12.75 billion in investment — the eighth-highest in the nation. Continuing investments from the BIL and the IRA can help solidify Arizona’s EV supply chain leadership in the global marketplace, not just the U.S. Unfortunately, billions of dollars that have already helped revive important towns across Arizona, like Casa Grande, are at risk.

We’re hoping Arizona’s business community and our elected officials at the state and federal levels will rise to this moment and support programs and funding that grow our vibrant clean economy.

Steven G. Zylstra is president and CEO of the Arizona Technology Council, a trade association representing more than 750 science and technology companies that do business in Arizona.