ELECTRIC CHARGE

Here’s how the EV ecosystem is driving Pinal County’s economic development

The future of transportation is electric, and that future is being built in Pinal County. James Smith, director of economic and workforce development for Pinal County, says that the state and county encouraged the development of this electric vehicle (EV) industry cluster, but it ultimately took shape organically.

Nikola and Lucid Motors chose Pinal County to manufacture their EVs, which Smith believes attracted other companies in the supply chain. Both companies, however, have recently announced job layoffs — Nikola cutting 120 Arizona-based positions and Lucid Motors reducing its total workforce by 1,300 jobs.

That said, the EV pipeline is still a bright spot in Pinal County’s economic development. From mining the copper used in electric vehicles (EVs) to recycling batteries at the end of their lifecycle, here’s more about the EV ecosystem taking root in Arizona’s third-most populous county.

Copper County

Arizona has a long history of copper mining, with the state flag’s copper star symbolizing the mineral’s longtime importance to the economy. According to the Arizona State Mine Inspector’s Annual Report to the Governor for calendar year 2021, there are 67 active mines in Pinal County, three of which are copper mines.

“The county has a long history of copper mining, and we’re seeing a resurgence of that with some mines coming back online that have been shuttered for decades,” Smith says. “They will provide copper that’s so necessary not only for electric vehicles, but a lot of green energy applications. In many ways, Pinal County will be the epicenter of copper for the U.S., and we’ll provide a huge percentage of the copper necessary for these projects.”

Sophie Dessart, manager of communications and public affairs for Florence Copper, explains that an EV requires nearly six times more copper compared to a typical internal combustion engine — 180 pounds versus 30 pounds.

“The resulting demand for copper generated by EVs is already affecting global copper markets and will only continue to grow in the years ahead, particularly when you consider that half of all light-duty vehicle sales in the U.S. are mandated to be EVs by 2030,” she continues.

When the copper required for EV charging stations is factored in, along with other renewable power sources, Dessart notes that the annual demand for copper is expected to more than double in the coming decades.

“A recent study published by market experts at S&P Global predicts the world will face copper supply shortfalls beginning in 2025, with the copper supply gap reaching an unprecedented 9.9 million metric tons by 2035,” she says. “If we don’t increase our domestic production of copper here in the U.S, we risk seeing our net-zero goals stalled by shortages of the material S&P Global calls ‘the metal of electrification.’”

When Florence Copper is fully operational, it will be producing LME grade ‘A’ copper “right here in Pinal County, in the midst of a burgeoning EV ecosystem” that can be used by EV manufactures and other green technologies, Dessart continues.

“We fully expect the metal we produce will stay right here in America to benefit U.S. manufacturers — including EV and solar companies and others contributing to America’s energy transition,” she says. “Our made-in-the-U.S. copper is expected to have the lowest carbon and energy intensity of refined copper produced in North America — providing additional opportunities for EV manufacturers in Arizona to reduce their own carbon footprint.”

Florence Copper is awaiting a final federal permit from the U.S. Environmental Protection Agency, after which an 18-month construction