The Inflation Reduction Act (IRA) has sparked an unprecedented wave of investment in Arizona, reinforcing our state’s position as a leader in clean energy innovation, infrastructure and advanced manufacturing throughout 2024. At the Arizona Technology Council, our mission to drive growth in the state’s technology sector has given us a front-row seat to how transformative these investments are now — and how vital they are for Arizona’s economic future.

Since the IRA was signed into law in 2022, Arizona has attracted more than $11.8 billion in new clean energy investments, making us one of the top states for clean energy growth. These investments are expected to create more than 18,000 jobs across various sectors from solar energy to electric vehicle (EV) manufacturing. Companies like KORE Power, Lucid Motors and JA Solar are proof of how federal policies can empower local businesses to lead and position Arizona as a national leader in the clean energy revolution. 

KORE Power’s new KOREplex facility in Buckeye exemplifies this progress. With production expected to start in 2025, this 1.3-million-square-foot lithium-ion battery manufacturing facility will bring around 3,000 jobs to the city. The project will directly benefit from IRA incentives designed to promote domestic clean energy production and innovation, underscoring the Act’s tangible impact on our communities. 

The automotive industry is another bright spot. EV manufacturing pioneer Lucid Motors has experienced remarkable growth, thanks to the IRA’s provisions. The law includes consumer tax credits that make EVs more accessible and grants that lower production costs, enabling the company to scale its operations and meet rising demand.

Meanwhile, solar and battery production have also seen a dramatic boost. JA Solar has contributed to Arizona’s leadership in solar panel manufacturing, fueled by the IRA’s investment in renewable energy technologies. In Tucson, American Battery Factory is investing more than $1.2 billion in its gigafactory that will create 1,000 jobs and produce advanced battery systems crucial for renewable energy storage when the facility starts operations in 2025.

The IRA has laid the foundation for a brighter, more sustainable future for Arizona, but this progress depends on maintaining bipartisan support for its provisions. At the Council, we are committed to supporting businesses seeking to grow in Arizona’s technology sector while ensuring that policymakers and the public recognize how critical these investments are to our state’s long-term growth and global leadership in technology.

As Arizona continues to reap the benefits of this transformative legislation, we’ll continue to strive to make sure all Arizonans understand the role the IRA plays in advancing economic growth, energy independence and environmental resilience.

Steven G. Zylstra is the president and CEO of Arizona Technology Council and SciTech Institute.