Build the Future of Commuting in Greater Phoenix
Autonomous and electric vehicles are changing the world we live in, and Greater Phoenix is a prime location for the development and testing of this transformative technology. Not only is Arizona a hub of electric vehicle consumers, ranking tenth nationally for registered electric vehicles, residents and public policies alike support the testing of autonomous vehicles. As a relatively young region built in the age of the automobile, Greater Phoenix is exceptionally positioned to support development, testing and production of AV and EVs through supportive policies, reliable infrastructure, an established supply chain, competitive operating costs, diverse talent pipeline and high quality of life.
AV/EV Industry Report
Get our 37-page, in-depth report on the autonomous and electric vehicle ecosystem in Greater Phoenix.
Established Supply Chain
Greater Phoenix offers a robust ecosystem with a significant presence from advanced technology companies. The region also has a longstanding automotive R&D infrastructure with many major automakers.
Supportive Policies
Greater Phoenix offers supportive policies and a competitive tax environment for autonomous and electric vehicle innovators. Multiple executive orders have been signed to advance autonomous vehicle testing and reduce the barriers for innovators in Arizona.
Reliable Infrastructure
Greater Phoenix came of age in the era of the automobile, meaning that it has new, high-quality infrastructure, a gridded street system, wide roads and lower levels of traffic.
Competitive Operating Costs
Greater Phoenix offers lower annual operating costs than Dallas and San Jose with cheaper real estate and benefit costs compared to peer markets. Greater Phoenix also offers several quality incentives to further decrease operating costs.
Diverse Talent Pipeline
Greater Phoenix boasts competitive, non-distance program completions at colleges and universities in concentrations related to autonomous and electric vehicle research and development.
High Quality of Life
Greater Phoenix offers shorter commute times than peer markets, more than 300 days of sunshine annually, and fewer days with significant weather interruptions.
Established Supply Chain
Global leaders in EV, AV and batteries
Greater Phoenix is home to major players in the electric and autonomous vehicles and battery spaces. See the global companies and explore the interactive map below outlining companies throughout the supply chain in the region.
Lucid Motors
Lucid Motors’ manufacturing plant in Casa Grande employs about 2,500 people and has 1,300 acres surrounding its Phase 1 facility tagged for further expansion. In 2025, the company purchased the former Nikola facilities in Phoenix and Coolidge for additional manufacturing and development.
Waymo
Waymo has set the standard for autonomous vehicles. Since launching in 2018 as the country’s first fully autonomous ride hailing service, Waymo One has traveled over 40 million miles and has ten of thousands of active riders.
LG Energy Solution
LG Energy Solution’s first stand-alone cylindrical and ESS battery plants in North America, a $5.5 billion investment, is on track to be completed in 2026.
Rendering: Gansam Architects & Partners
Notable Electric Vehicle Manufacturers and Suppliers
Thanks to the infrastructure, regional growth and history of high-tech innovation, Greater Phoenix is a hub for next-generation vehicle development. That’s why innovators like Battle Approved Motors, Infineon and Magna operate in the region.
Autonomous R&D in Greater Phoenix
Ccompanies leverage the region’s business-friendly operating environment to research and test autonomous capabilities. Gatik and Synopsys have partnered with NVIDIA, while Nuro develops technology for automated passenger vehicles, personally owned vehicles and logistics services.
Battery Development
Stimulated by the $5.5 billion LG Energy Solution investment in Queen Creek, the region’s battery and storage ecosystem is emerging as a major player in the electric vehicle sphere.
Download the full industry analysis for more local Greater Phoenix suppliers and innovators.
89798
registered electric vehicles in Arizona
Source: Department of Energy Alternative Fuels Data Center
$76.5M
Arizona received $76.5 million to build out its EV infrastructure through the National Electric Infrastructure Formula Program.
5400
Nearly 5,400 students earned degrees relevant to AV/EV development in 2022-23
Source: Lightcast 2025 Q1 Dataset
Supportive Policies
A business-friendly operating environment
Arizona is committed to hosting the emergence of new technologies. Leadership encourages innovation and opens doors for companies to test and validate their tech. Scroll through the timeline below to explore the last decade of AV innovation, starting in 2015 with former Ariz. Gov. Doug Ducey.
Taxes & Incentives
Arizona offers a highly competitive tax environment with a low average state sales tax rate (8.6%), corporate income rate (4.9%) and unemployment insurance (2.0%). In addition, Arizona passed a bill in 2022 to change the depreciation schedule for business and agriculture properties to lower assessed value and reduce taxes. Business-friendly incentive programs include the Quality Jobs Tax Credit, Qualified Facilities Refundable Tax Credit and Renewable Energy Tax Investment Credit.
Comparative Operating Advantages
- Minimal regulation
- Right-to-work state
- Low unionization
- Low worker’s compensation and unemployment
- Foreign Trade Zone
- Military Reuse Zone
Qualified Facilities Refundable Tax Credit
The Qualified Facilities Refundable Tax Credit targets manufacturing facilities, including those focusing on research and development or headquarters locations. It offers a refundable income tax credit equal to the lesser of:
- 10% of the qualifying capital investment
- $20,000 per net new full-time employment position at the facility
- $30,000,000 per taxpayer
Download the full industry analysis for more incentives and program details.
Reliable Infrastructure
Reliable Power
Arizona has the second-most reliable power grid in the nation and 71% fewer natural disasters than the adjacent state of California. From 2014-23, Arizona recorded only 16 total hours of power outages. Reduce risk and increase operating efficiency moving to Greater Phoenix.
Grid system
As a relatively young region, Greater Phoenix came of age in the era of the automobile, meaning the street system for vehicles as a grid plan with wide roads and lower levels of traffic, providing an optimal test environment for autonomous vehicles.
Favorable Climate
From flat desert land to mountains with snow, Arizona has excellent weather for manufacturing and testing autonomous and electric vehicles alike.
5G Connectivity
Phoenix was one of the first cities in the nation to deploy 5G, accelerating the capacity for AV testing and decreasing latency across technologies.
Light Rail & Commute Time
The region offers an expanding light rail and modern freeway system, ensuring there is a robust supply of talent no matter where a business is located. Average commute time in the region is only 26.7 minutes, significantly shorter than comparable peer markets.
Airline Connectivity & Access
Enjoy prime connectivity in Greater Phoenix with proximity to Mexico and the cross-border supply chain, and air travel and commerce efficiency through multiple airports. Phoenix Sky Harbor alone offers over 1,200 daily domestic and international flights.
Competitive Operating Costs
A Business-Friendly Operating Environment
Greater Phoenix provides the right combination of affordability, size and scalability. Compared to other metros, Greater Phoenix is less expensive or competitive across all major expenses. Despite having one of the largest talent pools among peer markets, the region has one of the lowest employee payroll costs, while also boasting affordable real estate payments.
Operating Cost Analysis
Annual Operating Cost – R&D
| Metro |
Payroll |
Benefits |
Utilities |
Real Estate |
Property Tax |
Total Operating Cost |
Index |
|---|---|---|---|---|---|---|---|
Phoenix |
$11,368,022 |
$1,825,472 |
$45,476 |
$834,000 |
$2,259 |
$14,075,228 |
100.0% |
Austin |
$13,175,047 |
$2,113,418 |
$43,024 |
$816,500 |
$90,462 |
$16,236,452 |
115.4% |
Dallas-Fort Worth |
$12,704,171 |
$2,038,986 |
$52,113 |
$695,000 |
$114,739 |
$15,605,009 |
110.9% |
Detroit |
$11,783,422 |
$1,908,298 |
$51,121 |
$547,500 |
$0 |
$14,290,941 |
101.5% |
Reno |
$11,690,150 |
$1,976,017 |
$48,855 |
$714,000 |
$63,865 |
$14,492,886 |
103.0% |
San Jose |
$16,136,026 |
$3,064,841 |
$107,512 |
$1,782,000 |
$60,550 |
$21,150,928 |
150.3% |
Source: Applied Economics Metrocomp Tool 2025
Download the industry report for a cost analysis on manufacturing in the AV/EV sector.
Calculate Your Real Estate Savings
Select your MSA, building type and square footage to see how much you would save on annual real estate costs in Greater Phoenix.
Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Type
Sq. Feet
Total Annual Savings
$
Calculations were performed using annual lease rates per square foot, effective property tax rates, and average costs of water, wastewater, electric and natural gas; utilities are included in office lease rates.
Sources: GPEC Metrocomp Tool
Diverse Talent Pipeline
New Talent Entering the Workforce
Greater Phoenix has competitive, non-distance program completions at colleges and universities in concentrations related to autonomous and electric vehicle research and development. The region produced over 5,000 graduates in related concentrations during the 2022-23 school year.
Key Programs & Colleges
Local universities including Arizona State University (ASU), University of Arizona (U of A) and Grand Canyon University (GCU) offer programs preparing students for autonomous and electric vehicle fields. There are also a variety of community college programs and technical schools that train students in engineering and computer science with focuses in automotive, electrical systems, mechanical engineering systems and robotics.
Total Completions Awarded by Metro
Completions by Degree Type
| Certificates | Associates | Bachelor | Master | Doctor |
|---|---|---|---|---|
1,316 |
279 |
1,899 |
1,697 |
117 |
Source: Lightcast 2025 Q1 Dataset
Download the full industry analysis for a comprehensive look at Greater Phoenix’s talent pool and pipeline.
High Quality of Life
Experience a vibrant lifestyle and diverse culture at an affordable cost of living.
Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep.
Click the icons below to learn more about Greater Phoenix living.
