US forges new ‘battery belt’ in hopes of electric future
Growing up, Devante Cuthbertson assumed he might have to leave his hometown in North Carolina to pursue a career, but a new multi-billion dollar Toyota battery factory gives him a reason to stay to sit.
The 28-year-old from Greensboro is among students in an internship program at Guilford Technical Community College and works at the automaker three days a week with an eye toward future employment.
“At one point I felt like maybe I would go to another state or another country and try other jobs,” Cuthbertson told AFP.
But when the Toyota tie-in “came, I thought, wow, maybe North Carolina isn’t so bad.”
The United States is seeing a wave of investment as President Joe Biden pushes to rebuild “hollowed out” industrial communities and grow domestic supply chains in key sectors such as electric vehicles (EVs), batteries and semiconductors.
Biden is not only appealing to working-class voters in crucial swing states like North Carolina ahead of November’s presidential elections, but also wants to counter Chinese dominance in the green technology industry.
A new “battery belt” has taken shape, largely in the Southeast, including North Carolina and Georgia, as EV battery and component factories spring up.
But it is unclear whether Biden will get credit for this boom.
– ‘Possibility’ –
The rise of factories in southern areas with non-union workers has put pressure on Biden to deliver on his promise of “good union jobs.”
Last August, a coalition of unions and community groups from Alabama and Georgia sought an “enforceable agreement” with automaker Hyundai to protect workers’ rights.
The company’s EV factory and partnership for a battery facility in Georgia represent a $7.6 billion investment.
Despite some tensions, the job prospects are energizing communities, including Greensboro and surrounding areas built on industries like textiles, tobacco and furniture.
Cuthbertson was working for a laminate flooring manufacturer when he heard about Toyota’s arrival.
“I felt like I had a chance,” he said. “You become part of something bigger than just a job. It’s a career.”
People discuss the company, he said, “in grocery stores, at school, at work.”
By 2028, the $13.9 billion battery plant will employ 5,100 people, up from about 800 today, said Sean Suggs, president of Toyota Battery Manufacturing, North Carolina.
The Liberty plant, a half-hour drive from Greensboro, will produce batteries for hybrid, plug-in hybrid and fully electric vehicles.
– Concerns about infrastructure –
With electric vehicle adoption expected to reach about 30 percent by 2030, U.S. customers need options, Suggs said.
Infrastructure, including a lack of charging stations, remains a concern, he added.
Meet EV fast charger manufacturer Kempower, which has started shipping products from a new factory in North Carolina serving North America.
CEO Tomi Ristimaki said Kempower entered the US market two years ahead of schedule due to government funding in the sector.
Since 2021, companies have announced nearly $650 billion in U.S. investments in green energy and manufacturing, boosted by subsidies.
Biden’s climate action plan, the Inflation Reduction Act, funnels about $370 billion into subsidies for America’s energy transition, including tax breaks for U.S.-made electric cars and batteries.
Ristimaki also expects that government financing of infrastructure will support demand, and that U.S. and European automakers will grow as they try to counter Chinese dominance.
Kempow is investing more than $40 million in its Durham facility, creating hundreds of jobs.
It also plans to ensure that more than half of its supplies come from US suppliers, to take advantage of a government initiative to create a nationwide network of EV chargers.
– Not just the US –
The Tar Heel State has seen “nearly unprecedented levels of activity” with green technology projects, said Christopher Chung, CEO of the Economic Development Partnership of North Carolina.
“Not only are we seeing more of these projects, but on average these projects are significantly larger in terms of capital investment and employment impact,” he added.
Other major projects include a $5 billion factory investment by semiconductor company Wolfspeed.
But companies must first weather a demand cooling period, with several U.S. automakers recently putting the brakes on electric vehicles.
They also suffer from insufficient skilled workers in production.
It is unclear whether new investments boost Biden’s political prospects, and some attribute them to market forces.
On the ground, the benefits are clear for Toyota machine driver Evito Perez: “Schools receive more money that they did not have before, many roads are being renovated.”
But he did not immediately associate it with politics and saw the green transition as a broader trend.
“It’s not just the United States,” he said.
