Tennessee Electric Vehicle Investments Lead Southeastern United States

Ford Motor Company announces Monday the creation of a huge industrial campus in Jackson marked the biggest – but not the first – major investment in the electric vehicle industry in Tennessee.

The state, after all, Southeastern US leader in electric vehicle manufacturing.

As of 2013, Tennessee is home to more than 152,000 electric vehicles and more than $ 6.2 billion in related investments, according to the Tennessee Department of Economic and Community Development.

In Spring Hill, General Motors has invested more than $ 4.3 billion in the past 18 months to make electric cars and the batteries that charge them.

In Clarksville, Tennessee’s fifth largest city, a nine-figure industrial investment is coming, part of the electric car movement. Also in Middle Tennessee, Nissan, which in 1983 opened the state’s first auto plant in Smyrna, helped spark interest in Interstate 840.

In eastern Tennessee, the Japanese company DENSO invested $ 1 billion in Maryville five years ago to create and develop more than 1,000 manufacturing jobs.

Travel south to Chattanooga to discover a significant VE investment from Gestamp US: $ 94.7 million.

Nearly 20,000 Tennessee residents – from Columbia to Clarksville – are employed by companies with EV operations, which plan to produce more than 200,000 EVs by 2028. This step, however, could be completed sooner than expected. as the supply chain for electric vehicles continues to evolve. ramp up in the region.

FORD FACTORY:Ford aims to create 5,700 jobs with new factory and battery plant near Memphis

TENNESSE AUTOMOTIVE INDUSTRY:Ford Plans $ 5.6 Billion Memphis Regional Megasite Project: How We Got Here

GM marks with heavy investments

In Spring Hill, General Motors has invested more than $ 4.3 billion in the past 18 months to make electric cars and the batteries that charge them.

In April, GM announced the largest investment in state history – building a $ 2.3 million Ultium Cells electric battery plant in partnership with LG Energy Solutions of South Korea. The establishment should open its doors at the end of 2023.

And last October, GM announced a $ 2 billion investment to build the Cadillac Lyriq, a luxury electric SUV, at the Spring Hill plant.

The investments in Tennessee are part of GM’s goal of moving to a fully electric, carbon-neutral portfolio by 2040, including heavy-duty pickup trucks. The Detroit-based automaker aspires to stop selling light trucks and gasoline-powered sport utility vehicles by 2035, although the date may adjust in the coming decades.

More EV investments on the way

Already, American-owned and operated Microvast Power Solutions has chosen Clarksville as the site where it will manufacture electric vehicle batteries primarily for commercial vehicles. The decision is expected to create 287 new direct jobs and an investment of $ 220 million in Montgomery County.

Microvast has signed a buy-sell agreement at a local site previously owned by Akebono Brakes and plans to upgrade the brake manufacturing plant to a Li-ion battery manufacturing plant, officials said earlier this year. .

Microvast is expected to start production next summer.

Property tax incentives and reductions

State incentives and the Rutherford County Industrial Development Board’s property tax abatement agreements have triggered significant growth in Middle Tennessee.

Nissan suppliers create jobs:3 automotive suppliers from Smyrna to Nissan will add 520 positions

In 2009, Nissan announced plans to build the LEAF, an electric car and battery factory. The Rutherford County IDB has accepted an initial property tax rebate of $ 62 million over 20 years for Nissan projects. The project included adding 1,300 jobs to build the electric batteries and the LEAF by the end of 2012. (The deal was then revised to a property tax rebate of $ 70.7 million over 30 years.)

To help Nissan pursue its battery and electric car projects, the US Department of Energy granted Nissan a $ 1.4 billion loan in 2010. The arrangement appealed to former US Representative Bart Gordon, D-Murfreesboro.

“This investment will be an incredible boon to thousands of Tennessians and their families, and it will consolidate our status as a leader in advanced manufacturing and green industry,” Gordon said in 2010.

Although the battery plant continues to exist on Nissan’s 884-acre Smyrna campus, the company adjusted the IDB agreements in 2018 after selling the battery plant to Envision Group. Nissan’s main auto plant measures nearly 6 million square feet.

Nissan touts the plant as being able to build up to 640,000 automobiles per year. The Smyrna plant now manufactures the Maxima, LEAF, Pathfinder, Rogue, INFINITI QX60 and Murano brands.

The automobile factory is expanding:Nissan Smyrna Plant Expands Footprint to Nearly 6 Million Square Feet

The factory will resume during the pandemic:Nissan expects auto manufacturing to resume by mid-May after pandemic delay

“Tennessee is recognized as a world leader in automotive manufacturing”

Gestamp US, a subsidiary of Gestamp Automócion SA, based in Spain, provided the financing to expand the operations of its Ferdinand Peich Way and Hickory Valley Road factories in Chattanooga.

The project marks Gestamp’s third local expansion in a decade. The project will create 260 additional jobs over the next five years.

Gestamp supplies welded assemblies and metal stampings to vehicle manufacturers, and is undergoing this expansion to meet higher demands for the production of electric vehicles.

“Tennessee is known as a world leader in automotive manufacturing, and it is thanks to companies like Gestamp that our state’s auto industry continues to grow and excel,” said Tennessee Governor Bill Lee , in an earlier statement on the expansion.

Also in Chattanooga is Volkswagen’s first electric vehicle manufacturing plant in North America. The project, first announced in early 2019, represents an investment of $ 800 million. It will create 1,000 jobs in Hamilton County.

The facility will manufacture vehicles that use the Volkswagen Modular Power Toolbox, or MEB, chassis. Production at the plant is expected to begin in early 2022.

In February, state officials announced that Axle Manufacturing would be relocating new operations to Tennessee, resulting in an investment of $ 42 million, as well as 240 jobs.

Sese Industrial Services will build a 300,000 square foot axle assembly plant in Chattanooga, where components for the Volkswagen family of electric vehicles will be manufactured.

More electric vehicles on the horizon in Tennessee

DENSO is a leading manufacturing supplier for companies such as Honda and Toyota.

The newly expanded production lines focus on environmentally friendly vehicle safety parts and systems, according to the company, which hopes to “dramatically increase North America’s role in the global trend toward safety and security. the electrification of vehicles “.

The aforementioned industries only appear to be the start of electric vehicle investment in the state.

Got a story to tell? Contact Angele Latham by email at [email protected], by phone at 731-343-5212, or follow her on Twitter at @angele_latham. Contact reporter Scott Broden with topical advice at [email protected] or 615-278-5158. Follow him on Twitter @ScottBroden. Contact Jimmy Settle at [email protected] or 931-245-0247. To support his work, get a digital subscription to TheLeafChronicle.com.

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