3 Jan 22

Prepare for EV battery production wave in the US

To supply the incremental growth in electric vehicle (EV) production seen in the United States in the coming years, approximately 14 new battery cell Gigafactories are seen opening in the country within the next five years. 

Besides the multi-billion dollar investments in EVs announced by Chevrolet and Ford in 2021, other automakers such as Tesla, Hyundai, Toyota, Volkswagen, Stellantis, Mazda, Lucid, Nikola, and Canoo are focused on pushing the EV market in the coming years. It is this private sector push, along with the new electrification plans announced by President Biden, which is pushing the Gigafactory wave.

EV growth seen in the USA, courtesy of LMC Automotive   

While countries such as China, Japan and South Korea are home to most battery cell factories in the world today, battery production in the US mainly consists of the Gigafactory in Nevada operated by Tesla and Panasonic which supplies the Tesla Model 3 and Model Y.

Besides Tesla increasing its battery cell production further through its new Gigafactory in Austin Texas (launch first week 2022), the US Department of Energy has issued a report listing 13 other battery factory projects in the country. Eight are joint ventures between automakers and battery manufacturers.

Tesla gigafactory in Austin, Texas. Grand opening in January 2022 (copyright: Tesla)

Also coming out in 2022 are two more facilities, namely a factory in Lordstown, Ohio being built by General Motors and LG Chem, and another just North of Atlanta, Georgia currently under construction by SK Innovation). In 2023, a facility is seen opening up in Spring Hill, Tennessee (GM-LG Energy Solution), and one more just north of Atlanta, Georgia (SK Innovation).

In 2024, Stellantis and LG Energy Solution is planning to open-up another in a city which is yet to be disclosed and four more are planned to launch in 2025.

They are: Stanton just North of Memphis, Tennessee (Ford), Central Kentucky (Ford-SK Innovation), Southeast of Greensboro, North Carolina (Toyota), and another in an undisclosed city (Stellantis-Samsung SDI)

Meanwhile, Ford and SK Innovation is planning to open a facility in Central Kentucky in 2026 and three more are planned but without launch dates. Volkswagen is building one in Chattanooga, Tennessee and two more are being planned by GM and LG Energy Solution in an unknown location.

To share expereinces and network with customers, fellow professionals and suppliers about the transition to electrification and many other fleet and mobility related topics, register now for Global Fleet Conference 2022 taking place in Lisbon, 2-4 May.

Authored by: Daniel Bland