Skip to main content

Features

Station to Station

by Adam Bruns

Remember as a child trying to learn the difference between “electric” and “electronic,” two words separated only by that “ON” switch in the middle?

Today — with a surge in EV demand and a shortage of semiconductors — they are the two most operative words in the automotive industry. How they twist together to alter the DNA of mobility is a story best told by an array of projects now flipping the “ON” switch. The billions of dollars in investment are coming in big chunks: Rivian’s $5 billion in Georgia; Mercedes’ 6 million sq. ft. in Alabama, Ford’s planned BlueOval mega campus in Tennessee with a sister battery plant in Kentucky.

The announcements keep coming fast and furious, at a rate to rival a Tesla from a dead stop. Just as assembly lines are evolving to modular, station-to-station production, here we present a non-linear report from the front lines of the industry. Buckle up.


NorthAmericanAutoFinal0522-NM-i

In late April at its historic Rouge Complex in Dearborn, Michigan, Ford launched production of the electric F-150 pickup. “Today we celebrate the Model T moment for the 21st Century at the Rouge Electric Vehicle Center,” said Ford Executive Chair Bill Ford. “The Rouge is where Ford perfected the moving assembly line, making it a fitting backdrop as we make history again.” is the first Ford plant without traditional in-floor conveyor lines, instead using robotic Autonomous Guided Vehicles to move F-150 Lightning trucks from one workstation to another.

Ford says it has invested a total of $950 million and created 750 jobs at the Rouge Electric Vehicle Center. “Ford’s investment in Michigan for F-150 Lightning alone now totals more than $1 billion,” the company explained, “with 1,700 recently created jobs spread among five Ford plants in the state, including Van Dyke Electric Powertrain Center, where Lightning electric motors and electric transaxles are assembled, and Rawsonville Components Plant, where Lightning batteries are assembled.”


NorthAmericanAutoFinal0522-NM-side

Photo courtesy of Ford

In late March, Vietnam-based VinFast committed to a $2 billion, 7,000+-job manufacturing investment in Chatham County, North Carolina, that will encompass an entire EV ecosystem. Even the U.S. Secretary of Commerce got in on the good news. “EVs are the future of auto manufacturing,” said Commerce Secretary Gina Raimondo while touting the Biden Administration’s clean-tech and domestic investment bona fides. “The only question is whether we want EVs and their components made here in America or somewhere else.”

The Vietnamese company’s manufacturing complex at Chatham County’s Triangle Innovation Point megasite will cover 800 hectares (1,977 acres) with production of electric cars and buses and EV batteries, and an area for suppliers. After an anticipated production launch in summer 2024, Phase 1 is expected to churn out 150,000 vehicles a year. The Hanoi-headquartered company already has a plant in Haiphong, Vietnam, that will have the capacity to produce 950,000 vehicles per year by 2026. VinFast’s family of products in its home country includes e-scooters, electric buses and electric cars, charging station systems and green energy solutions.

“North Carolina’s strong commitments in building a clean energy economy, fighting climate change and reducing greenhouse gas emissions in transportation make it an ideal location for VinFast to develop its premium, smart and environmentally friendly EVs,” said Le Thi Thu Thuy, Vingroup vice chair and VinFast global CEO. VinFast evaluated over 50 megasites in 10 states for their facility, said the Economic Development Partnership of North Carolina. The project adds to a spate of future mobility projects in North Carolina that include Arrival’s $41.2 million U.S. headquarters and multiple vehicle and battery plants in the Charlotte region; Doosan Portable Power’s $71.93 million manufacturing facility in Statesville (also in the Charlotte metro); and Toyota’s $1.29 billion battery manufacturing plant that will employ 1,750 at the Greensboro-Randolph Megasite in Liberty.


NorthAmericanAutoFinal0522-NM-w

When Toyota announced its investment at the Greensboro-Randolph site, it stated its location process was driven in part by renewable energy availability as well as support from local stakeholders, including governments, utilities, partners, and others. Among the following elements it identified as driving the decision were:

  • An extensive and well-maintained highway system for overland logistics
  • Four international airports and two seaports
  • Onsite rail
  • An outstanding, diverse workforce
  • Renewable energy availability
  • World-renowned education system
  • Strong government partnership at both the state and local levels.

NorthAmericanAutoFinal0522-NM-w2

The Japanese automaker’s facility projects and workforce growth range far and wide elsewhere on the continent. In April, Toyota said it would add 220 new positions to its Production Engineering Division, which serves as the go–between for design and manufacturing, in order to support North American operations “as plans to advance electrified vehicle production kick into high gear.” In 2021, 25% of Toyota’s total U.S. sales were electrified. The company plans to further expand its global portfolio of electrified vehicles to 70 by 2025. While Georgetown, Kentucky, is the headquarters for the division and is currently home to nearly 800 engineers, the division employs more than 1,800 spread across its North American footprint.

Later in April, Toyota said it would invest $383 million across four plants in Huntsville, Alabama; Georgetown; Troy, Missouri; and Jackson, Tennessee, in order to support production of both four-cylinder engines and options for hybrid electric vehicles.


NorthAmericanAutoFinal0522-NM-m

Mercedes-Benz in March opened a new 600-job battery plant at its Tuscaloosa site in Bibb County, Alabama, a few months ahead of the start of production of all-electric Mercedes-EQ vehicles in the United States. The company’s Tuscaloosa plant has produced large SUVs for 25 years. Since the 1990s, the company has invested more than $7 billion in Alabama, $1 billion of which is going toward the battery plant, logistics centers and a production line upgrade to make EVs. Mercedes-Benz U.S. International employs around 4,500 people and secures an estimated additional 11,000 jobs with suppliers and service providers in the region.


NorthAmericanAutoFinal0522-NM-s

Should you blink, you might miss another 10-figure, EV battery investment by LG Energy Solution. Over three consecutive days in late March, the South Korean battery maker announced projects totaling some $7.2 billion in Queen Creek, Arizona; Lansing, Michigan; and Windsor, Ontario. Another $1.7 billion, 1,200-job project quickly came along in Holland, Michigan. The $4.1 billion Windsor project, in partnership with auto giant Stellantis, is projected to be Canada’s first EV battery facility. In Lansing, said Young-Soo Kwon, CEO of LG Energy Solution. “Our third battery manufacturing plant, fittingly located in America’s automotive heartland, will serve as a gateway to charge thousands and later millions of EVs in the future.” LG supplies electric vehicle batteries to Tesla, Lucid Motors, GM and Proterra. — Gary Daughters


NorthAmericanAutoFinal0522-NM-in

In April, Japan-based EV battery technology company Envision AESC Group announced it will invest $2 billion in a new 3-million-sq.-ft. gigafactory in the Kentucky Transpark (pictured) in Bowling Green, Kentucky. The 30-gigawatt-hour plant will create 2,000 skilled jobs in the region, “producing battery cells and modules to power the next generation EVs produced for multiple global automotive manufacturers,” the company said. Slated to receive up to $116.8 million from state incentive programs and up to $5 million in grant-in-aid for skills training, the operation will be powered by 100% renewable energy supplied by onsite generation and purchased locally from the Tennessee Valley Authority. Combined with the Ford BlueOvalCity project in Glendale, the project drives Kentucky’s production capacity for EV batteries to 116 gigawatt-hours, No. 1 among all U.S. states. Envision AESC also is building gigafactories in Douai, France, and Sunderland, UK.


NorthAmericanAutoFinal0522-NM-lLars Carlstrom, the founder-CEO of Italvolt, in April announced the launch of a new company, Statevolt, which will construct a $4 billion, 54-gigawatt-hour gigafactory in Imperial Valley in Southern California, with enough capacity to serve the battery needs of around 650,000 EVs a year at full capacity. “To launch the new facility, Statevolt has also signed a Letter of Intent (LOI) with Controlled Thermal Resources (CTR),” the new company said in a release. “Under the terms of the LOI, CTR will deliver sustainable, locally produced lithium and geothermal power, from the company’s to-be constructed Hell’s Kitchen Lithium and Power development. Statevolt is currently undertaking due diligence to determine the best location on which to build its facility.” The company said the facility would deliver up to 2,500 direct jobs, and described the arrangement with CTR as “one of the first of its kind in the world” as Statevolt will “source its key feedstock, lithium, and its power from local resources, in order to minimize the environmental impact of production and build a more sustainable and secure supply chain.”

The project comes as Carlson’s Italvolt also signs agreements for another gigafactory in the Piedmont region of Italy.


NorthAmericanAutoFinal0522-NM-H

Hyundai Motor Manufacturing Alabama (HMMA) in April announced it will continue to grow its sport utility vehicle production capabilities later this year with the addition of the hybrid version of the Santa Fe, marking the beginning of Hyundai’s EV production in the United States. Recently announced production enhancements at HMMA including the start of production of Santa Fe Hybrid will include $300 million in investments and the creation of 200 additional jobs. A recent Newsweek cover anointed Hyundai Motor Group Executive Chair Euisun Chung as “Visionary of the Year.”


NorthAmericanAutoFinal0522-NM-p

Plant workers, union and company leaders and provincial and federal leaders including Canadian Prime Minister Justin Trudeau gathered at Honda of Canada’s HCM plant in Alliston in March to celebrate the news that the company will invest C$1.38 billion over six years to upgrade its facilities there. “Today’s announcement marks an important step in the company’s pathway to electrification and will see HCM become the North America Lead Plant for the all-new 2023 CR-V Hybrid crossover,” said the company. “This will bring Honda’s total Canadian facilities investments to more than C$6.5 billion since 1986, when Honda became the first Japanese auto maker to build a Canadian manufacturing facility.”

Energy Report

Station to Station

Alternative-fuel vehicles are shouldering their way into the City of Big Shoulders, and bringing foreign corporate facility investment along for the ride.

The Gas Technology Institute (GTI) announced earlier this month that natural gas vehicles (NGVs) are earning their way onto fleet rosters one by one since the April 2010 launch of the Chicago Area Alternative Fuels Deployment Project. Part of the national Clean Cities program launched in 2009 by the U.S. Department of Energy, the program — jointly overseen by GTI, the City of Chicago and the Chicago Area Clean Cities Coalition — has received nearly $15 million in DOE Clean Cities grants.

“Many new jobs were also added to the local economy in 2010 — for mechanics, vehicle assembly line and equipment manufacturing workers, and construction workers at fueling infrastructure providers,” said GTI, though it didn’t say how many.

As T. Boone Pickens has suggested , the brightest initial promise for NGV use is in fleets, be they corporate, municipal or institutional. GTI offers up Groot Industries, the largest independent solid waste management services provider in Illinois, as a case in point. Thanks to two different grants, one from Clean Cities, the company has added 33 NGVs to its fleet.

“Natural gas fuel is not only a cheaper alternative to diesel fuel,” said Brian Curry, Groot’s director of fleet and facilities, in the GTI press release, “it’s domestic, and complies with new emission requirements without the need to install complex exhaust after-treatment devices. And natural gas engines are 50 percent quieter in operation. They’re also very clean, so we’re able to lengthen our oil change intervals.”

Groot built its own natural gas fueling station in 2009, which is currently undergoing an expansion. GTI also is working with Clean Energy Fuels Corp. to establish two new natural gas fueling stations in the Chicago area.

“According to Joanne Hayes, business development manager at Clean Energy, these stations will be built at sites managed by Taxi Medallion Management, a company that recently purchased 38 NGVs for its fleet of taxicabs,” said GTI. “Clean Energy also plans to install two additional publicly accessible natural gas fueling stations at the city’s two airports by the end of the year.”

Waste Management Chicago added six NGVs to its fleet last year and bulk-food carrier Foodliner added five, also with the help of Clean Cities grants. Waste Management is pursuing fleet conversions in other markets too, most recently in Vancouver, B.C., where it’s deploying 20 new trucks powered by compressed natural gas as part of a plan to eventually convert its entire area fleet of 100 vehicles. The fleet conversion is over and above the company’s more than 100 separate projects in North America to convert its landfills’ gas for use by homes and businesses, including fulfilling 75-percent of the natural gas needs of a Cascades paper mill in Ste. Sophie, Quebec.

Back in Chicago, GTI leaders say this is only the beginning.

“We expect there will be in excess of 230 vehicles that will be running on natural gas by the end of 2011 as a result of the Clean Cities funding,” said Ted Barnes, GTI project director.

EV Infrastructure Needs Factories Too

While NGV proponents try to redefine the expression “gas up,” others are charging ahead in the Second City.

One week before the GTI announcement, European electric vehicle charging station manufacturer DBT established its new DBT USA subsidiary in Chicago, and promised that U.S. assembly operations would begin later this year.

Based near Lille in northern France, the company has installed 6,000 stations in 20 countries. After its founding in 1990, DBT began as a leader in electric equipment design and manufacturing, producing energy supply units and transformers. In the early 1990s, European government electric mobility pilot programs allowed the company to collaborate with car manufacturers, utilities, municipalities and other fleet owners.

In addition to offering turnkey hardware and software and integration services for all stripes of EV charging applications and locales, the company also works with other firms to offer sustainable sourcing for the power: “AllCell will provide lithium-ion battery packs protected by AllCell’s revolutionary passive thermal management system,” said DBT of its U.S. subsidiary, “while Sun Phocus will provide solar panels utilizing cutting-edge holographic planar concentrating (HPC) technology.” The firm hopes the blend of options will enable customers to customize systems based on vehicle use, budget, location and sustainability goals.

Jake Edie, vice president of DBT USA, says several factors drove the selection of Chicago as a U.S. base.

“One is that the vast majority of the big firms investing in electric vehicles are in California, so we wanted to be somewhere else,” he says. Chicago’s mélange of human capital, business schools and research institutions, and skilled manufacturing and assembly workers struck the right chord. The partnership with AllCell Technologies also was a big driver, he says.

“Beyond that, when you look at the map of where federal money has gone into electric vehicle charging, the Midwest is relatively underserved,” he observes. “A lot of money has gone to the West and East coasts. Chicago is a great launching point from that perspective as well.”

Edie’s team numbers fewer than 10 at the moment, and occupies shared space on West 41st Street on the South Side of Chicago. Asked about the search for an assembly site, he says it’s early in the process, but the focus is on the Midwest in order to be close to the headquarters office. Like the headquarters, the idea is to start small and ramp up as business warrants, with an initial facility of 10,000 sq. ft. or less, and somewhere between 10 and 20 employees, he says, “though, given where the world is with the rollout of electric vehicles, there are so many unknowns that those estimates could be wildly off.”

Edie says there truly aren’t that many EVs actually out on the road yet. But the charging-station business is ramping up regardless. “It’s a difficult time to forecast volume next year, much less three years from now.” He says his team is talking with potential distributors however, which may help out by contacting local governments in their areas.

“Generally we’re looking for the standard types of incentives anyone would look for in terms of tax credits,” he says. “Our assembly operation doesn’t require a tremendous amount of capital equipment, so most industrial spaces are potentially usable.”

Or reusable.

“Our headquarters is on the south side of Chicago, and there is a large number of vacant industrial spaces available not far away, at quite low rent. We’ll be looking for those sorts of spaces. And it would be nice to provide revitalization to those areas, especially with manufacturing.”