GreenPower Motor Company plans to open a new EV factory in southern New Mexico, adding hundreds of jobs as the state ramps up incentives and fleet electrification.
The Vancouver, BC-headquartered company said it chose New Mexico because of the state’s growing EV ecosystem, generous financial incentives, and Santa Teresa’s designation as a Foreign Trade Zone. GreenPower already operates manufacturing facilities in California and West Virginia.
The new 135,000-square-foot facility, located in Santa Teresa near the US-Mexico border, is expected to create around 340 permanent jobs and generate over $200 million in economic impact. Operations are scheduled to begin in Q1 2026, with GreenPower taking possession of the factory on June 1, 2026.
New Mexico’s push to electrify its own fleets also played a major role in the decision. In 2025, the state signed a contract to help electrify more than 5,000 state fleet vehicles through an Electric Vehicles as a Service (EVaaS) model, as part of a mandate requiring all state agencies to buy zero-emission vehicles when available and transition the entire state fleet to zero-emission by 2035.
Last year, the state also awarded a separate four-year, $400 million contract aimed at electrifying more than 2,000 school buses and 3,500 state transit and so-called “white fleet” vehicles. The program includes charging infrastructure and vehicle-to-grid (V2G) integration as part of New Mexico’s “Electrify New Mexico” initiative.
To secure GreenPower’s investment, the state committed a total of $14.6 million in incentives. That package includes $5 million through the Local Economic Development Act (LEDA) program, $4.6 million in Job Training Incentive Program (JTIP) funds, $1.36 million in Rural Jobs Tax Credits, and $3.65 million as part of the state’s High-Wage Jobs Tax Credit program.
Santa Teresa’s Foreign Trade Zone status was another key factor. The designation enables manufacturers to streamline customs procedures and reduce costs associated with imports, exports, and inventory – an increasingly valuable advantage as companies navigate tariff uncertainty and supply chain risks.
Santa Teresa sits within the fast-growing Borderplex region, anchored by the Santa Teresa Port of Entry and major rail connections from Union Pacific and BNSF. The area has become a hub for manufacturing and logistics, backed by significant state investment in infrastructure such as the Border Highway Connector.
GreenPower builds all-electric, purpose-built medium- and heavy-duty vehicles for delivery, shuttle, transit, and school bus markets. The company says the New Mexico facility will support both domestic manufacturing and deployment as states and fleets accelerate the shift to zero-emission transportation.
Read more: Google just spent $4.75B chasing power for AI data centers
Author: Michelle Lewis
Source: Electrek
Reviewed By: Editorial Team
