News Summary
Tennessee is emerging as a leader in the electric vehicle and battery manufacturing sectors, driven by federal tax credits and new investments. Significant developments, including a battery materials manufacturer’s project reconfiguration, promise job creation. Although the state sees a 60% increase in EV chargers, it still lags behind national averages. With investments like Ford’s BlueOval City plant and the opening of the DS Electera battery factory, Tennessee is positioned for growth in the EV industry amidst rising sales and strategic federal funding.
Tennessee is making significant strides in the electric vehicle (EV) and battery manufacturing sectors, thanks to federal tax credits and a surge in investments. A battery materials manufacturer has announced plans to reconfigure its West Tennessee project, with the potential to create hundreds of jobs in the area. This development is part of a broader trend that positions Tennessee as a leader in the Southeast for anticipated jobs and investments in the EV industry.
The state has recorded a remarkable increase in publicly accessible EV chargers—a 60% growth over the past year. Despite this positive trend, Tennessee currently has just 0.31 EV chargers per 1,000 people, which is still below the national average of 0.53 and the Southeast average of 0.40. This highlights the need for continued expansion in charging infrastructure as EV adoption continues to rise.
According to a report by Atlas Public Policy, the Southeast region accounts for 38% of the $205 billion in announced investments in the EV industry throughout the United States. Leading the way is Georgia, which is set to create 27,394 jobs in EV manufacturing, while Tennessee is positioned second with an expected 16,164 jobs. This is partly attributed to significant investments, such as Ford’s BlueOval City plant in Tennessee, which represents a $5.6 billion investment and is anticipated to generate around 5,800 jobs once operational.
Between July 2023 and June 2024, Tennessee saw cumulative EV sales reach 43,319 units, reflecting an annual growth rate of 42%, outpacing the national average of 37%. Although new light-duty EV sales experienced a brief decline in early 2024, there are signs of recovery across the Southeast, further indicating a resilient market.
The state received $21.9 million in federal funding as part of the National Electric Vehicle Infrastructure program to establish 31 fast-charging sites along major highways. This investment aligns with the state’s efforts to improve its EV infrastructure. Additionally, Tennessee lawmakers have approved a substantial $900 million incentive package for Ford, which is contingent on job creation efforts, including a significant $500 million allocated for construction purposes.
Further solidifying Tennessee’s position in the battery production market is the newly opened DS Electera factory in Shelbyville, recognized as the largest electrolyte manufacturing facility in North America. This facility is expected to create 101 jobs while supplying battery manufacturers with 60,000 tons of electrolytes annually, further contributing to regional economic growth.
South Korea has played a notable role in Tennessee’s investment landscape, contributing $4.5 billion since 2019 and resulting in approximately 3,500 jobs created in the state. Overall, Tennessee’s public funding for electric transportation has reached $277 million, which places it second in the Southeast on a per capita basis.
Additionally, the United Auto Workers (UAW) has announced a $40 million commitment towards organizing efforts through 2026, following recent unionization campaigns at auto manufacturing plants in Tennessee. With 11 battery manufacturers operating in the state, Tennessee has attracted over $5 billion in clean energy investments since 2022, generating approximately 6,700 jobs.
As part of Ford’s comprehensive plans, LG Chem is investing $1.7 billion into cathode material production for EV batteries, illustrating the growing importance of sourcing materials locally and sustainably. Recent changes to federal tax credits under the Inflation Reduction Act are expected to influence procurement strategies across the battery supply chain, especially amid new requirements aimed at sourcing materials responsibly.
However, the introduction of the Foreign Entity of Concern (FEOC) regulations may pose challenges for sourcing and manufacturing projects, particularly those that depend on the supply chain from China. As Tennessee continues to expand its presence in the EV and battery manufacturing markets, navigating these complexities will be vital for sustainable growth and development.
Deeper Dive: News & Info About This Topic
- The Commercial Appeal
- WGNS Radio
- Knox News
- Tennessee Lookout
- Daily News Journal
- Wikipedia: Electric Vehicle
- Google Search: Electric vehicle in Tennessee
- Google Scholar: Electric vehicle manufacturing Tennessee
- Encyclopedia Britannica: Electric Vehicles
- Google News: Tennessee electric vehicle jobs
Author: HERE Nashville
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