EV Production and the CA Economy: A Win-Win

5 March 2021

PG&E is excited to participate in an industry that will bolster economic growth in California in addition to providing crucial environmental benefits (both local and global). The growth of the electric vehicle industry and the well-being of the California economy have proven to be and will continue to be synergistic phenomena. EVs are set to be California’s top manufacturing export of 2020 and the state’s second-largest export overall. This is especially impressive considering the rate at which EVs climbed to the top - only ten years ago, the EV industry was generating little to no revenue in California.

Accompanying this rapid growth of the industry is its direct support and development of locally held jobs across the EV supply chain - over 275,000, in fact. And the quantity of these jobs does not detract from their quality, with an average wage in the industry of $91,000, significantly higher than California’s average wage across all industries of $68,500 or even the average manufacturing income of $80,000. The largest EV company in the state is, of course, Tesla. But there are a plethora of other companies working across the EV supply chain (think cars, buses, trucks, charging infrastructure, even cutting-edge technologies such as vehicle-grid integration) that contribute to the prominence of the industry and the jobs it in turn provides for Californians.

Furthermore, electric vehicles are beneficial to California not only just today, but also will be well into the future. All signs point to the ramping up of EVs across California, the United States more broadly, and even the world. Moreover, the recent election of President Joe Biden holds great promise, with a goal of 500,000 public charging stations, stricter fuel economy requirements likely, an expanded/extended federal EV tax credit, and more. This availability of new and various policy mechanisms to bolster EVs is very welcomed by the private sector - the Alliance for Automotive Innovation, the leading lobbying group for the U.S. auto industry, recently called for “substantial, long-term investments in electrification, as well as advanced safety technologies,” asserting that the industry is “on the cusp of a transformative moment.” PG&E shares this belief and is ready to do its part to accelerate transportation electrification in the state of California.

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