Southern US states benefit of expanding EV manufacturing industry

The Southern states of the US benefit as EV battery investments expand. The local economy is reportedly booming with subsidiaries like SK On’s production facility.

One of the major causes of contention as the autoworkers' strike enters its third week is the remuneration of employees in the factories that make the batteries for electric vehicles. Many of the facilities are being constructed in the south, where most of the labor force is non-union.

Over $90 billion in battery investments were announced nationally during the last three years, creating an estimated 70,000 manufacturing employment. About eight states — Michigan, Indiana, Ohio, Kentucky, Tennessee, North Carolina, South Carolina, and Georgia — make up the "Battery Belt," which is now noted for its concentration of expansion.

Despite their contributions to the expanding EV manufacturing industry, many of these states remain conservative in politics and have rejected climate legislation. This summer, Georgia, which has seen significant investment, implemented a new fee on public EV charging.

However, a rise in manufacturing is reviving the local economy in places like Commerce, Georgia.

A subsidiary of the South Korean corporation SK Group, known as SK On, manufacture battery cells for electric vehicles at their sizable production facility in Commerce.

As part of a larger trend, foreign battery producers are opening hundreds of new facilities in the United States to be closer to the automakers they supply. SK On, which provides batteries to automakers like Ford, is one of these companies. Despite some recent employment layoffs, the company still employs over 3,000 people at the same plant, giving 20-minute commuters like Desmond Salmon job prospects.