Study: Ohio Well-Positioned for EV Supply Chain Opportunities
COLUMBUS, Ohio – A report released Thursday demonstrates that Ohio has strong potential to emerge as an industry leader and hub for advanced technologies that can reduce emissions and innovate the automotive industry for decades to come.
“Ohio Battery Supply Chain Opportunities” was co-sponsored by the Natural Resources Defense Council and JobsOhio. Benchmark Mineral Intelligence, a consulting firm, prepared the report.
Citing recent initiatives such as Ultium Cells LLC’s $2.3 billion Lordstown investment and other electric-vehicle developments, the report highlights that Ohio is uniquely positioned to become an industry leader – reaffirming the state as a hub for innovative business endeavors in advancing automotive technologies that can reduce emissions for decades.
“As the industry continues to innovate and steer itself towards a future focused on a growing EV supply chain, this report solidifies Ohio’s value proposition as a premier destination for future innovation,” said J.P. Nauseef, president and CEO of JobsOhio.
The report notes that the state has made a multi-decade commitment to the automotive supply chain, resulting in more than 90% of Ohio’s exports currently related directly or indirectly to the automotive industry. That well-developed infrastructure and logistics landscape puts the state in prime position to serve growing consumer interest in electric vehicles, the report says.
According to the report, Ohio has the second-largest automotive workforce in the country and is ranked as a top state for solar development in the Midwest over the next five years. These are key advantages that make Ohio a logical place for future investments in the EV supply chain, as the auto industry increasingly favors renewable energy sources closer to their operations.
According to the report’s analysis, the most important key advantages in Ohio include:
- The state’s ability to quickly take a leadership position among U.S. states for implementing both upstream and downstream policies
- Ohio is a premier location for a cathode active materials investment given the state’s already significant EV investments, which include the $2.3 billion Ultium Cells Lordstown plant, that will lead to further industry growth and job creation
- Ohio has well-developed infrastructure and logistics that have been pivotal to the state’s strong multi-decade commitment to the automotive supply chain
- The large and growing solar energy industry in Ohio
- Increasing renewable energy penetration can guarantee lower energy costs
“Ohio has a unique position in the domestic supply chain for electric vehicles. With a quickly growing solar industry and a well-established automotive supply chain legacy, Ohio has an opportunity to lead the U.S. domestic EV supply chain build-out,” said Andy Leyland, head of supply chain strategy, Benchmark Mineral Intelligence. “Ohio is a premier location for cathode active materials manufacturing. A successful effort will create a positive feedback loop that will help to attract other aspects of this supply chain, including anode manufacturing, chemical processing, and even recycling.”
Dan Sawmiller, Ohio energy policy director for the Natural Resources Defense Council, says the transition to electric vehicles is driving new opportunities across the state.
“This report makes clear that Ohio can pursue emissions reductions while creating good jobs and attracting new investment,” he says. “In fact, it shows that the two go hand-in-hand as the auto sector aims to sell its customers a carbon-free electric vehicle.”
The full report can be accessed at JobsOhio.com/wp-content/uploads/2022/02/BMI_Ohio_Report.pdf.
Pictured: Rendering of the Ultium Cells LLC plant under construction in Lordstown.
Published by The Business Journal, Youngstown, Ohio.