With the global push towards net-zero targets, electric vehicles (EVs) are becoming more popular with consumers.
According to figure released in 2023, the United States is set to attract more investments globally in electric vehicle and battery manufacturing.
For the first time, these investments will surpass those set for the China markets, but not quite those of Europe, with around $210 billion of investments in the electric vehicle (EV) industry for the US.
Global figures show need for EV manufacturing plant expansion
According to official figures in the US, more than 200,000 fully electric vehicles were sold in the first quarter of 2022. Forecasts are suggesting that by 2035, nearly half of all new car sales in the US will be EVs.
Global car manufacturers have announced their plans to spend about $515bn on EV manufacturing by 2030.
This financial commitment strengthens the market and ensures the need for companies to build additional electric vehicle manufacturing plant operations to fulfil that commitment.
Electric vehicle manufacturing plant growth across the US
With more sector growth forecast and demand for EVs growing exponentially, car manufacturers are expanding their production capabilities by building battery manufacturing plants throughout the country.
As of 2002, the number of car manufacturers that have tabled plans to expand or build a new EV manufacturing plant business in the US had reached 13.
Companies involved include Toyota, Ford, Nissan and Hyundai, which is building its inaugural exclusively electric vehicle manufacturing plant to be ready by 2025, and will produce about 300,000 EVs per annum.
Texas is the second largest state in the US and an economic powerhouse. The state is home to a well-established automotive manufacturing sector and home to numerous electric vehicle manufacturing plant businesses.
It is also a member Nafta auto corridor, where billions of dollars of assembled vehicles and auto parts are shipped between Mexico and Texas.
As the state capital and the 11th most populous city in the country, Austin personifies the business-friendly, economic powerhouse that is Texas.
With existing infrastructures for EV manufacturing coupled with growing demand, Texas is an attractive proposition for setting up business in the sector.
Consistently ranked as one of the best states to start a new business enterprise, Texas is awash with entrepreneurial activity that is stimulating a strong economy within the automotive sector as well as related industries.
In terms of what makes it a contender for the best place to start an electric vehicle manufacturing plant, Texas offers an array of highly range of highly favourable business tax structures and incentives for new and expanding businesses.
These include no state income tax for employees, allowing businesses to attract employees and reducing costs for start-ups. In terms of expansion, GM is adding its third plant in the US and Tesla recently announced a new location in Austin, Texas.
With established companies investing in Texas, the economic forecast for the sector looks propitious for new EV manufacturing plant businesses.
Ohio is a Midwestern state with a high-performing and increasingly diverse economy and a business-friendly environment.
In 2022, the emergence of the EV manufacturing plant sector was cemented by Honda, which announced its plan to build a $4.4bn EV battery plant in Fayette County, Ohio.
As the market evolves and the EV market expands exponentially, states with electric vehicle tax credit initiatives become more attractive to companies such as Honda.
In a sign of the potential for EV manufacturing plant operations across Ohio, Honda forecasts an annual production capacity of 40GWh and the creation of 2,200 jobs in the state.
Further support for Ohio in its rise to be one of the best locations for EV manufacturing plants in the US comes from the continued investment by Honda. Beyond the Fayette County facility, it has committed $700m to extend the capacity and technological capabilities of its existing Ohio-based EV manufacturing plant operations. With the creation of 300 additional jobs, the sector continues to thrive in Ohio.
Arizona is the sixth largest and 15th most populous state in the US with a gross state product of about $383m per annum.
As the state capital, Phoenix represents an attractive option for potential business start-ups and is the driving force of Arizona’s economy.
With states vying for a slice of the rapidly expanding EV production market, Arizona has enjoyed some major traction.
Last year saw the announcement of a 590-acre electric vehicle manufacturing plant facility based in Casa Grande, Arizona, designed specifically to house the production and assembly of the new air luxury sedan EV range.
Information and Data from Global Business Alliance, ARTEXREDI, US Data and Statistics, Texas Business, Arkansas Dept. Of Commerce, City of Houston, Arizona State Chamber of Commerce, Ohio Chamber of Commerce.