GreenPower Secures $14.6 Million in State Support to Establish Electric Vehicle Manufacturing Hub in New Mexico

GreenPower Motor Company has confirmed plans to establish a new manufacturing facility in Santa Teresa, New Mexico, supported by a $14.6 million package of state incentives and tax credits. The investment includes a $5 million award under New Mexico’s Local Economic Development Act (LEDA), alongside $9.6 million in job training incentives and tax credit programs, reflecting the state’s push to build a domestic electric vehicle manufacturing ecosystem.

The company cited New Mexico’s growing electric vehicle policy framework, its Foreign Trade Zone designation in Santa Teresa, and long-term fleet electrification commitments as central factors behind the decision.

 

Manufacturing Expansion Linked to Jobs and Supply Chain Strategy

 

The Santa Teresa facility is expected to create approximately 340 permanent jobs across manufacturing, servicing, and operations. GreenPower plans to begin operational setup in the first quarter of 2026, with formal possession of the manufacturing plant scheduled for June 1, 2026.

Company leadership emphasized that locating production in New Mexico supports both domestic supply chain resilience and competitiveness in medium- and heavy-duty electric vehicles, including delivery vehicles, shuttles, transit buses, and electric school buses.

 

Alignment with Statewide Electrification Mandates

 

New Mexico’s policy direction played a significant role in the decision. In 2025, the state committed to a fleet mandate requiring all state agencies to purchase zero-emission vehicles where available, with the goal of transitioning the entire state fleet to zero-emission vehicles by 2035.

That effort includes contracts to electrify more than 5,000 state fleet vehicles through Electric Vehicles as a Service models, as well as a separate four-year, $400 million investment to electrify over 2,000 school buses and 3,500 transit and government vehicles. These initiatives form part of the state’s broader “Electrify New Mexico” strategy, which also includes charging infrastructure deployment and vehicle-to-grid integration.

GreenPower said its manufacturing and distribution plans are designed to complement both vehicle production and large-scale fleet deployment under these programs.

 

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Breakdown of Financial Incentives

 

Of the total $14.6 million state commitment, $5 million comes from the LEDA program, which supports job creation through public-private partnerships. The remaining incentives include $4.6 million in Job Training Incentive Program funding, $1.36 million through the Rural Jobs Tax Credit, and $3.65 million from the High-Wage Jobs Tax Credit.

Company executives described the incentive structure as a key enabler in offsetting capital costs and accelerating the timeline for domestic manufacturing expansion.

 

Strategic Value of the Santa Teresa Foreign Trade Zone

 

The Santa Teresa Borderplex was also highlighted as a strategic advantage. The area is a major U.S.-Mexico trade corridor, supported by rail connections from Union Pacific and BNSF and proximity to ports such as Long Beach and Houston. Ongoing state investment in infrastructure, including the Border Highway Connector, has further strengthened its appeal for advanced manufacturing.

GreenPower noted that operating within a Foreign Trade Zone provides flexibility around customs procedures, inventory management, and import-export costs. The designation also offers protection against tariff uncertainty, which the company described as a material consideration in its capital planning.

 

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Positioning New Mexico as an EV Manufacturing Base

 

State and local officials framed the announcement as part of a broader effort to position southern New Mexico as a hub for advanced manufacturing, clean transportation, and cross-border trade. The combination of policy mandates, infrastructure investment, and targeted incentives reflects a strategy to attract manufacturers aligned with zero-emission transportation goals.

For GreenPower, the Santa Teresa facility represents both a manufacturing expansion and a strategic foothold within a state actively scaling demand for electric commercial vehicles, linking industrial development with long-term decarbonization objectives.