The rise of electric vehicles (EVs) and lithium-ion battery manufacturing is reshaping the economic landscape of the U.S. South. Attracting a majority of investments are the states of Georgia, South Carolina, North Carolina, Kentucky, and Tennessee. Between 2018 and 2024 alone, the South attracted $428 billion in clean energy investments.
With billions in investments flowing into the region, the South is rapidly transforming into a powerhouse for advanced battery production, electric vehicle assembly, and the broader e-mobility supply chain. The reasons for this we’ll elaborate below, but it’s a matter of striking while the iron is hot.
Capital flows into each state include (but are not limited to):
Although the now-paused Inflation Reduction Act and Bipartisan Infrastructure Law fueled the capital flow of clean energy investments, state-level policies also played an outsized role in attracting battery & EV manufacturers into the region.
On top of the federally-funded National Electric Vehicle Infrastructure (NEVI) program, Battery Belt states are expanding fast-charging networks along priority interstates and highways to ease range concerns. Georgia partnered with EVgo and Tesla’s Supercharger network to expand high-speed charging corridors. This infrastructure isn’t just for consumer EVs, but is also crucial for electric pickups and heavy-duty vehicles that rely on high-powered charging for efficiency.
Readily available industrial mega-sites provided factories with close proximity to railways, ports, more affordable utilities, and a skilled workforce. Established logistical networks, abundant land, and lucrative financial incentives also contributed to major companies, such as Toyota and Nissan, to migrate South.
More than a manufacturing hub, the Battery Belt represents the future of mobility and transportation. The trifecta of manufacturing, use, and end-of-life solutions for the modern automotive industry co-existing in the same region will ensure synergies for all players in the Battery Belt.
To ensure long-term sustainability for the EV industry, a mix of advanced technology investments, supply chain resiliency, and continuity in clean energy policies would be critical.