Electric vehicle maker Envirotech Vehicles Inc. announced Tuesday that it will move its manufacturing operations and headquarters across the country from California to Arkansas, adding about 800 jobs as part of an $80.7 million investment over the next five years.
The company said it will move to Osceola and refurbish a 580,000-square-foot facility on 100 acres at 1425 Ohlendorf Road. Initial operations will begin in midsummer with the plant providing the final outfitting and shipment of vehicles while also converting the facility into a full manufacturing operation.
"We are confident that Osceola has the perfect business climate and local workforce to allow us to see growth and success in the region as the state's first commercial electric vehicle manufacturer," Envirotech Chief Executive Officer Phillip Oldridge said in a news release announcing the new plant. "This, and the plant's location near the Mississippi River with access to the port of Osceola, will be vital as we position (Envirotech) to bring new innovation and technology advancements to the state."
It will be about two years before full-scale production can begin at the Osceola facility, with the plant churning out up to 2,000 vehicles a year, Oldridge said. To do that, the company plans to invest up to another $200 million above the initial $80.7 million investment.
"To get up and running and fully functional, it's going to take -- in addition to the initial $80 million -- it's going to take another $200 million for infrastructure," Oldridge said. "We're in discussions right now about how to make that happen."
Management teams already are relocating from Corona, Calif., to Osceola. A team of about 30 executives should be in place in about 60 days, according to Oldridge.
Envirotech makes and provides all-electric, zero-emission vehicles and zero-emission drive trains for medium to heavy-duty commercial fleet vehicles. The company also produces customer-ready vehicles, systems and green technology that serves last-mile fleets, school districts, transportation service companies, and colleges and universities.
It now produces three types of electric vehicles: trucks, logistics vans and cutaway vans that are used by customers ranging from plumbers to delivery and construction operations. The Osceola facility also will manufacture lithium batteries for electric vehicles.
The company will place a priority on local sourcing of materials, including lithium and steel from Arkansas-based producers such as U.S. Steel.
State officials have longed to lure an auto manufacturer to Arkansas and have struck out with the major automakers. Arkansas, however, has gained a foothold in the electric vehicle market, and Envirotech's move to Osceola provides substantial momentum to that effort.
Steel manufacturing in the region provides a major attraction for other companies that rely on steel for their products and want to be in close proximity to reduce supply-chain challenges.
"This is kind what we've envisioned for northeast Arkansas," Commerce Secretary Mike Preston said Tuesday. "When you bring in big anchor companies like Big River Steel and U.S. Steel, folks in the supply chain are naturally going to gravitate to the area. We feel that manufacturing in the northeast is going to be strong for years to come."
Envirotech's expansion into Osceola also is another coup for the region, which was selected as the site for U.S. Steel's $3 billion plant in Osceola that the steelmaker says will be the most advanced steel mill in the world. That plant broke ground earlier this month, and U.S. Steel officials said Tuesday that they would work with Envirotech to supply products for the automaker's new plant.
Northeast Arkansas is building an ecosystem to support advanced manufacturing operations that are environmentally safer and can take advantage of major steel producers in the region.
"We have been intently focused on diversifying the economic profile of Mississippi County by attracting companies from new industries," Clif Chitwood, president of the Great River Economic Development Foundation in Blytheville, said in a statement Tuesday. "Envirotech has a long history of producing purpose-built electric trucks and vans, and we believe the company will be a valuable addition to the area, bringing a combination of employment opportunities, including technology, manufacturing and engineering."
U.S. Steel Chief Executive Officer David Burritt said the Envirotech expansion is further evidence that "Arkansas is becoming a center for advanced, sustainable manufacturing in the United States."
Also on Tuesday, Gov. Asa Hutchinson outlined plans for the Arkansas Council on Future Mobility, an advisory group of leaders from public and private organizations. The effort, which Hutchinson said will "lay the foundation for Arkansas' leadership in the transportation industry for decades to come," will be led by Cyrus Sigari, co-founder of venture capital firm, Up Partners of California.
Hutchinson is creating the council to help ensure that state regulations and policies do not hinder development of companies focused on mobility in Arkansas, and also to establish incentives and workforce training efforts to nurture future expansions like the commitment Envirotech is making to the state.
The governor named nearly 20 business, economic development and education leaders to the council Tuesday, though he said more appointees will join the effort. He tasked the group with producing a report by Nov. 30.
"The announcement today will impact the options in transportation and supply chain deliveries for generations to come," the governor said. "This is about the future; it's about economic opportunity. There is work to be done very quickly."
Officials with Envirotech were on hand at the Governor's Mansion for the announcement of the mobility council.
Tony Aquila, chief executive officer of Canoo Inc., also was on stage with the governor and will join the mobility council. In November, Canoo announced that it would move its headquarters to Northwest Arkansas, and use the area as an anchor for its electric vehicle production operations and for research-and-development efforts. Canoo officials said the company plans to have about 500 employees in Benton and Washington counties.
Envirotech comes to Arkansas with one customer already based in the state. Shine Solar of Rogers has purchased vehicles from Envirotech.
Company and state officials are still working on an incentive plan for Envirotech to assist the move to Arkansas, a spokesman for the Arkansas Economic Development Commission said.
The public company's stock trades on the OTCQX market, the top tier of over-the-counter markets that offers trading in companies that are not listed on traditional exchanges. Its stock closed Tuesday at just shy of 31 cents per share.