EV Industry Driving Massive U.S. Site Selection Projects Valued at $54 Billion

The automotive industry is going through a major transformation as it transitions into electric vehicle production. When combined with global supply chain reconfiguration, automotive manufacturers are driving massive site selection projects across the U.S. currently estimated to create $54 billion in capital investment and 62,000 jobs.

You should expect to see additional investment and job creation made by their suppliers as well. The projects to date include both vehicle and battery production. These projects are an economic developer’s dream and will transform the communities in which they locate. To help understand market activity, Site Selection Group has evaluated the latest EV projects around the country.

Reconfiguring the global supply chain

The majority of battery cells are currently made in China. The COVID-19 pandemic (COVID) and the war in Ukraine created significant challenges for companies with manufacturing in countries like China due to the disruption of the supply chain. As a result, automotive manufacturers have begun to restore production to the U.S. as they reconfigure their supply chains.

Another supply chain challenges faced by EV manufacturing is sourcing raw materials. They need lithium, nickel, cobalt, and other battery raw materials to make the batteries. Getting a lithium or nickel mine approved could take over 10 years for government approvals. Charlotte, North Carolina-based Albemarle recently announced plans to build a processing plant with 100,000 metric tons of annual capacity in the southeastern United States within rail access of a major port.

State and local economic incentives play a huge role

It has taken economic development organizations around the country years to be prepared to win these projects. Many states have invested millions in getting mega-sites ready for large-scale manufacturing projects such as these. To help attract them, they are awarding incentive packages including free land, infrastructure grants, tax credits, tax abatements, workforce training, and a slew of incentives to help make these companies successful.

For example, Toyota’s new battery plant near Greensboro, N.C. was awarded a $79.1 million grant over 20 years through the North Carolina Job Development Investment Grants (JDIG). The company will also receive a $7.5 million grant from the North Carolina Industrial Development Fund Utility Account. The performance-based incentive is contingent on the company meeting capital investment and job creation targets.

The EV industry is strongly supported by the federal government

In May 2022, the Biden administration announced that it will provide $3.1 billion in funding to support efforts to make electric vehicle batteries and components in the U.S. The funding is coming through the Bipartisan Infrastructure Law passed last year. The funds will help companies to build new factories and retrofit existing ones to make EV batteries and related parts. In addition, the Department of Energy said an additional $60 million will be available to support the reuse and recycling of used EV batteries. This is relatively a small amount of financial support when you look closer into the capital investment being made into these facilities.

The largest projects announced so far

Site Selection Group identified the largest EV-related projects announced over the last couple of years. These include both battery and vehicle production operations. The following list identifies these projects.

Largest EV Project Announcements