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Analysts: Trump Cuts to EV Tax Credits Could Roil BlueOval City

A Ford F-150 Lightning electric truck photographed at Town and Country Ford in Madison, Tenn. President-elect Donald Trump’s policy could negatively impact both production and sales of electric vehicles. (Photo: John Partipilo)

Uncertainty over President-elect Donald Trump’s plans for federal tax credits and loan programs supporting American electric vehicle manufacturing could stall Tennessee’s fast-growing electric vehicle and clean energy industries, analysts say.

Tennessee has seen an estimated $12.6 billion in investments in new clean energy projects since the passage of the Inflation Reduction Act under President Joe Biden in 2022, according to an October Washington Post analysis of data from the Massachusetts Institute of Technology and energy think tank Rhodium Group.

The Inflation Reduction Act (IRA) created more than 20 tax incentives for clean energy and manufacturing, marking one of the largest climate investments in American history. No Republican lawmakers voted for the act, but the Post’s analysis found “red” states – including Tennessee – have so far received the lion’s share of investment dollars following its passage.

Low-cost federal loans and tax credits for U.S.-produced batteries and battery components have helped companies stand up more cost-competitive electric vehicle plants in the United States, said Harrison Godfrey, managing director of clean energy industry association Advanced Energy United. The IRA also changed consumer electric vehicle tax credits to incentivize the industry to anchor in the United States; For the credit to apply, vehicles must have batteries made in the U.S. using materials sourced from the U.S. or some allied nations, Godfrey said.

But Trump’s transition team is reportedly planning to scrap the $7,500 tax credit for buyers who purchase new electric vehicles, Reuters reported Friday. And the fate of Biden-era clean energy programs remains unclear.

This is not a red state, blue state economic development story. This is an all of America economic development and manufacturing resurgence story, and Tennessee is a great example of how this resurgence, this growth, is serving ‘red’ America.

– Harrison Godfrey, Advanced Energy United

Energy industry analysts worry such a rollback would stymie the balance of producer and consumer-facing incentives.

“The fundamental thing to understand about that is that the two work in conjunction,” Godfrey said. “It’s not enough just to have one side of that policy … it’s great if we’re standing up factories, but if there’s nobody buying at the end of the assembly line for those components, for that finished vehicle, because we haven’t also helped support that consumption side of the equation … we see great investments that do not actually bear fruit.”

Dozens of bills seeking to rescind parts of the IRA have been considered in the House of Representatives in the last two years, but 18 members of the House Republican Conference wrote in favor of maintaining the IRA’s energy tax credits in an August letter to House Speaker Mike Johnson.

“Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” the letter states. “A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”

Jack Conness, a policy analyst at energy and climate think tank Energy Innovation, points to the letter as an example of the difference between rhetoric and reality in discussions about repealing parts of the IRA. The reality, he said, is that post-IRA investments have had “significant impact on economic growth and jobs” in red Congressional districts.

“Businesses have been operating under the assumption and making large investments in places like Western Tennessee on the assumption that this policy survives,” Conness said. “So when you want to potentially shake this up, it causes total chaos and havoc on the private business side.”

Electric vehicle and battery industries flock to Tennessee

These policies helped boost projects like Ford’s BlueOval City and the BlueOval SK battery plant in West Tennessee. The companies announced the plant’s development in Haywood County 2021. The U.S. Department of Energy approved a conditional loan of up to $9.2 billion to BlueOval SK under the IRA to build three battery plants in Tennessee and Kentucky last summer.

Godfrey said the future of the Loan Programs Office and its low-cost loan programs for EV and EV component manufacturers is a “big outstanding question.”

What to know: The new Ford BlueOval City plant poised to reshape West Tennessee

“If you deconstruct that, if you shutter the office or if you greatly reduce the size, shift that mission, I think there’s risk there that we don’t see additional projects like this funded in the future,” he said. 

But while some factories have secured their IRA loans, the ink isn’t yet dry on loans like BlueOval SK’s, which is still in the conditional phase.

U.S. Rep. David Kustoff’s West Tennessee district has seen $7.9 billion in investment since the IRA’s passage, according to the Post analysis, followed by U.S. Rep. Andy Ogles’ Middle Tennessee with $2.9 billion.

Both voted against the IRA. Neither could be immediately reached for comment.

Kustoff said in 2022 that the “radical spending bill” would “hurt energy producers” and “certainly worsen inflation,” among other things. Ogles called it a “gross waste of taxpayer dollars.”

Both have said BlueOval City and BlueOval SK will be transformational for the region.

Since 2022, EV component supplier Magna announced it would build the first two supplier facilities in BlueOval City’s Stanton supplier park, and a stamping and assembly facility in Lawrenceburg. NOVONIX Anode Materials announced a new $1 billion battery plant in Chattanooga. Ultium Cells announced a $275 million expansion of its plant in Spring Hill.

According to the Post’s analysis, post-IRA investments have spanned multiple Congressional districts in Tennessee:

Diana Harshbarger (R), District 1: $17 million
Charles Fleischmann (R), District 3: $746 million
Scott DesJarlais (R), District 4: $146 million
Mark Green (R), District 7: $672 million
Steve Cohen (D), District 9: $189 million

“This is not a red state, blue state economic development story,” Godfrey said. “This is an all of America economic development and manufacturing resurgence story, and Tennessee is a great example of how this resurgence, this growth, is serving ‘red’ America.”

Industry Turbulence

The EV industry’s expansion in Tennessee — and the United States — has not been without setbacks.

Ford announced it would push back production of its new, all-electric pickup truck from 2025 to 2027 as part of its response to heightened competition in the EV market and slowing demand. But BlueOval SK is expected to begin producing battery cells in late 2025.

Nissan announced it will cut 9,000 jobs and 20% of its global manufacturing capacity in November after a drop in profit. It’s not clear if the Nissan Smyrna Vehicle Assembly Plant will be impacted.

Production at Ford’s West Tenn. plant delayed to 2027 in attempt to improve profitability

General Motors announced it will lay off 1,000 employees — mostly from its global technical center in Warren, Michigan — on Nov. 15. The company’s largest facility in North America is in Spring Hill. 

Godfrey said all industries see “waxes and wanes” during growth, and the EV industry has been under a microscope in recent years. Progress doesn’t tend to be illustrated quarterly, but over years or decades, he said.

Conness said flirting with the idea of a repeal of IRA programs causes uncertainty to flare.

“The private market wants to know what’s happening on the policy side, and the private market has been pretty outspoken about keeping IRA,” he said.

Tesla Motors CEO Elon Musk, who has become a close associate of Trump, has spoken in favor of stripping the tax credit.

Musk wrote, “Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!” on his social media site X in July. In a Tesla earnings call that month, he mused that ending the tax credits would be “devastating” for Tesla competitors but “long-term probably actually helps Tesla.” (Tesla has reaped some benefits from federal loan programs, tax credits and carbon credits).

The Alliance for Automotive Innovation —  which represents 42 U.S. automotive companies including GM, Ford, Nissan and Volkswagen — penned a letter to Republican lawmakers in October asserting that the IRA’s EV tax credits are “critical to cementing the U.S. as a global leader in the future of automotive technology and manufacturing.”

“We think about the recent decades where we’ve seen much of the heartland of America, and particularly some of the industrial cities that were really prosperous and vital in the 20th Century collapse on themselves. It’s about the shrinking and departure of these anchor tenants … the major manufacturers there,” Godfrey said. “So the real risk is … if we see a pullback on the industrial policy that is helping support that resurgence, I think we could see a replay of what we’ve seen in a lot of these towns over the past 40-plus years, admittedly for slightly different reasons.”

Tennessee Lookout is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Tennessee Lookout maintains editorial independence. Contact Editor Holly McCall for questions: info@tennesseelookout.com. Follow Tennessee Lookout on Facebook and X.

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Report: Tennessee Ranks High in Projected Electric Vehicle Jobs, Lags In Charging Ports

A Ford 150 Lightning photographed at Town and Country Ford in Madison, Tenn. (Photo: John Partipilo)

As the Southeast continues to draw in electric vehicle and battery manufacturers, Tennessee ranks near the top of the list for anticipated jobs and investment, according to a new report examining electric transportation in the region.

But despite seeing the highest rate of growth in publicly accessible electric vehicle chargers — rapid charging ports increased 60 percent over last year in Tennessee — the state still lags well behind national and regional figures for chargers per person.

The report was the fifth annual study prepared by Washington, D.C.-based data analysis firm Atlas Public Policy for the Southern Alliance for Clean Energy, a renewable energy advocacy nonprofit. It explores the momentum of the electric transportation industry in Alabama, Georgia, Florida, North Carolina, South Carolina, and Tennessee.

Those six states have more than 100 facilities dedicated to electric vehicle (EV) and battery manufacturing, making up 31 percent of the 238,000 EV jobs announced in the U.S. as of June. Of $205 billion in announced investments in the EV industry in the United States, 38 percent will land in the Southeast region, according to the report.

What to know: The new Ford BlueOval City plant poised to reshape West Tennessee

Georgia ranks highest in the region with 27,394 total anticipated EV manufacturing jobs, with Tennessee’s 16,164 expected jobs coming in second.

Tennessee’s high ranking is in large part due to a Ford electric vehicle plant and battery manufacturing plant under construction in rural West Tennessee. BlueOval City and BlueOval SK, a joint venture of Ford and SK On, represents a $5.6 billion investment and accounts for 5,800 anticipated jobs once the site is up and running.

While growth in EV manufacturing continues, the report notes that Southeastern states have struggled with engaging utilities and expanding charging infrastructure. 

“Addressing these areas will be crucial for the region to fully capitalize on its potential in the evolving EV landscape,” the report states.

Market share

Tennessee’s 4.5 percent EV sales market share for light-duty vehicles in the Southeast falls near the middle of the pack, above Alabama and South Carolina but significantly below North Carolina, Georgia and Florida, which ranks first with an 8.9 percent market share.

Tennessee logged 43,319 cumulative EV sales between July 2023 and June 2024, the report states. That’s an annual growth of 42 percent, exceeding the national average of 37 percent.

New light-duty EV sales dipped in the first quarter of 2024, nationally and in the Southeast, but sales have begun to trend back up in most southeastern states, according to the report.

Charging ports

Tennessee saw the highest rate of growth in publicly accessible rapid EV chargers, increasing by 60 percent compared with last year. But the state’s 0.31 chargers per 1,000 people still falls well under the national average of 0.53, and 0.40 in the Southeast.

Tennessee has 583 fast-charging ports and 1,558 other charging ports, according to the report.

Tennessee and Georgia are the only two states in the study area to award federal National Electric Vehicle Infrastructure (NEVI) funding to build chargers where they are lacking along busy thoroughfares.

Tennessee awarded $21.9 million from the first round of NEVI funds for 31 fast-charging sites along the state’s major highways in January 2024. The money was matched by $10.7 million in private-sector investments.

Construction and production delays

The report notes that a Rivian plant in Georgia and a VinFast facility in North Carolina have delayed construction “due to unforeseen challenges or barriers to starting up production,” while Hyundai’s Metaplant in Georgia is moving ahead of schedule.

Ford announced in August that it would delay production at BlueOval City until 2027 as the company shifts its strategy toward prioritizing hybrid vehicles and lowering battery production costs. Ford initially planned to launch production of its next-generation pickup truck in 2025.

BlueOval SK at BlueOval City will begin producing battery cells in late 2025 to power electric commercial vans produced at the company’s Ohio assembly plant. BlueOval SK will begin manufacturing batteries for Ford’s E-Transit and F-150 Lightning at its Kentucky battery plant in mid-2025.

Public funding

Only Alabama increased state funding for electric transportation in the last year, the report states. 

Tennessee ranks second in the region for public funding per capita with a total $277 million approved, $266.5 million which comes from federal government programs.

The report doesn’t include loans or tax credits in states’ public funding totals.

Tennessee lawmakers approved a $900 million incentive package for Ford in October 2021, including a $500 million reimbursement for construction work on the megasite. The funding is contingent on job creation.

The federal government also offers tax credits through the Inflation Reduction Act for production of batteries and battery materials and advanced energy products, the report notes. Thus far, two projects in Alabama and one project each in Tennessee, Georgia, and South Carolina will take advantage of those credits, according to the report.

Union activity

The last 12 months have seen aggressive campaigning from the United Auto Workers union in auto manufacturing plants throughout the country. Following UAW’s strike against Detroit’s “Big Three” (Ford, General Motors, and Stellantis) in 2023, the UAW announced that it would commit $40 million toward organizing through 2026, focusing on the South, the report states.

Republican lawmakers make vocal push against Chattanooga VW plant union effort

The unionization campaign drew opposition from Tennessee Gov. Bill Lee in addition to the governors of Alabama, Georgia, Mississippi, South Carolina, and Texas.

“Unionization would certainly put our states’ jobs in jeopardy,” the governors wrote in a joint statement issued in April. 

Tennessee had two major union developments at automotive plants in 2024. In April, 4,300 Volkswagen Chattanooga employees became the first Southern auto workers outside of the Big Three to unionize. In September, Spring Hill’s Ultium plant, a joint venture from General Motors and LG Energy Solution, notched another union victory. The plant shipped its first battery cells to General Motors in March, two and a half years after breaking ground at the new facility.

Outside of Tennessee, United Steelworkers ratified their first contract at the Blue Bird facility in Georgia in 2024. But a union vote at an Alabama Mercedes-Benz plant failed in May.

Tennessee Lookout is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Tennessee Lookout maintains editorial independence. Contact Editor Holly McCall for questions: info@tennesseelookout.com. Follow Tennessee Lookout on Facebook and X.

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MLGW Grant Will Expand Network of Electric Car Charging Stations

Photo by Tommy Krombacher on Unsplash

Tennessee is turning Volkswagen’s deceptions into charging stations for electric cars. 

The automaker publicly admitted in 2015 that it had secretly and deliberately installed software designed to cheat emissions tests and deceive federal and state regulators in about 590,000 vehicles from 2009 to 2016. The U.S. Department of Justice sued Volkswagen and won a settlement of $14.9 billion. 

Some of that money was awarded this week to Memphis Light, Gas & Water (MLGW) to install fast-charging infrastructure for electric vehicles. The funding came from the Tennessee Department of Environment and Conservation (TDEC) from a total of $5.2 million awarded to 12 entities. 

“We are glad we can put these funds to use in ways that serve all motorists with electric vehicles,” said TDEC Commissioner David Salyers. “We are rapidly moving toward more electric vehicles on our roads, and this is a way to stay ahead of that demand.”   

The 12 entities will fund 32 charging units at 13 sites. All of them are intended to help TDEC and the Tennessee Valley Authority establish the Fast Charge TN Network. The program plans a network of fast-charging stations every 50 miles along Tennessee’s interstates and major highways.

“Electrification of transportation is critical to help our nation achieve its energy security and decarbonization goals,” said Jeff Lyash, TVA president and CEO. “Today, thanks to Governor [Bill] Lee and TDEC, our region is the nation’s epicenter for [electric vehicle] technology and manufacturing, and this grant demonstrates how we can move the Tennessee Valley further and faster, together, to make a cleaner future a reality.”  

MLGW said the new stations will bolster its existing network of more than 100 public charging stations throughout Shelby County. The utility did not say where the new stations would be installed, only that the grants are for areas “along prioritized interstate or major highway corridors across the state.”

“Together, we will expand public access to convenient, fast EV charging, alleviating fears of range anxiety and making EV charging a more visible activity, so that when residents and businesses consider their next vehicle purchase, they also consider electric vehicle options,” said J.T. Young, MLGW president and CEO. “MLGW is grateful to TDEC for this funding opportunity, and we look forward to operating fast-charging sites that serve Shelby County residents, businesses, and travelers.”

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Tennessee EV Charging Network Gets $88M Jolt

Photo by CHUTTERSNAP on Unsplash

Charging stations for electric vehicles are headed to gas stations, food stores, and truck stops across Tennessee thanks, in part, to $88.3 million from the federal government. 

The state will get more than $13 million in the current fiscal year to begin the program, part of the Infrastructure Investment and Jobs Act (IIJA) announced Thursday by the U.S. Department of Energy. The rest of the funds will be delivered over the next five years. 

Tennessee’s share of the funds is part of a larger, $7.5 billion effort from the U.S. Department of Transportation’s Federal Highway Administration (FHWA) to build a nationwide system of charging stations. The move is hoped to make electric vehicles reliable for short and long distance trips.    

”For too long, Tennessee has had unreliable and inconsistent charging facilities along its roads and highways, inconveniencing drivers and putting a drag on our regional economy,” U.S. Rep. Steve Cohen (D-Memphis) said in a statement. “These overdue investments will strengthen our state’s critical infrastructure — paving the way for cleaner, easier driving and supporting good-paying union jobs.”

The country’s current system now has a network of about 100,000 charging stations. The Biden Adminstration’s goal with the new funding is to expand that network to 500,000 chargers. 

The new money directs states to work with the private sector to build this network. This is “best achieved by harnessing the existing nationwide network of refueling locations,” according to lobbyists for refueling stations. The bill gives priority for charging stations at “travel centers, food retailers, and convenience stores,” according to the National Association of Truck Stop Operators (NATSO) and the Society of Independent Gasoline Marketers of America (SIGMA). The bill will not allow other companies to install charging stations and states cannot install them at rest areas.

The truck stop organization says its existing network offers convenience, amenities, security, food, and competitive and transparent pricing, all usually less a mile from an interstate. Gas station advocates say their stores will be able to offer charging in “communities where most residents cannot reliably charge their electric vehicles overnight” and that they are more suited for quick-stop charging that may not require a complete fill up.   

“Our industry understands that electric vehicle drivers will expect their driving and refueling experience to be as safe, seamless, and predictable as it is today,” reads a joint statement from NATSO and SIGMA. “There is no ‘range anxiety’ today for drivers of gas-powered vehicles. That is achievable for electric vehicles as well.”

The new network is hoped to help grow electric vehicle sales in the U.S. to 50 percent of the entire automobile market by 2030.    

”The U.S. market share of plug-in electric vehicle sales is only one-third the size of the Chinese [electric vehicle] market,” reads a statement form theWhiteHouse. “The President believes that must change.”

Credit: Tennessee Valley Authority/ TVA’s Electric Highway Coalition

 Last year, the Tennessee Valley Authority (TVA) launched the Electric Highway Coalition to bolster the electric charging network across its service area and into other states. That coalition has grown to 14 other energy providers across 29 states and the District of Columbia.  This push is hoped to install a network of fast charging stations across these areas with stations located less than 100 miles from each other.  

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News The Fly-By

Futurist: Companies Bet Big on Electric Transportation

REGENT’s seaglider is an all-electric, zero-emission “flying vessel” traveling at 180 miles per hour within 100 feet of the water’s surface. (Photo: REGENT)

Gas stations are as antiquated as CD players. Traffic jams are in the skies. Tourists flock to other planets.

That’s the world people described to Ford Motor Co. for its 10th-annual Looking Further With Ford trends report. But experts say many of these promising innovations will be pushed to avoid a not-so-promising future.

“Imagine a world where demands for food, water, and energy are outpacing supply, fueling widespread scarcity, and suffering across the globe,” reads the Ford report. “That’s the likely scenario as we know it. Experts project the global population will grow to 10 billion by 2050, and climate change has become so severe that the question now is no longer simply how to sustain this planet, but how to exit it.”

Moving people in the U.S. is the country’s largest source (29 percent) of greenhouse gas emissions, according to the U.S. Environmental Protection Agency (EPA). Two Memphis-connected transportation companies, Ford and Southern Airways Express, hope to help flatten this figure, betting on an electric future.

Ford picked West Tennessee last year to build its electric F-series trucks. South Korea-based SK Innovation will build a battery factory for the trucks there, too. When Ford unveiled its electric F-150 Lightning in May, it called it “the truck of the future.” Marketers used legacy language to rev up customers — like “iconic” and “passion” and “exhilaration” — but also added “clean.”

“For both Ford and the American auto industry, F-150 Lightning represents a defining moment as we progress toward a zero-emissions, digitally connected future,” said Bill Ford, Ford’s executive chairman, in May.

Demand for the new, clean truck is evident. The company closed reservations for the Lightning last month, with nearly 200,000 pre-ordered. So, consumers likely won’t find one on a lot for a year or more.

The U.S. Energy Information Administration (EIA) said electric vehicles (EVs) now comprise .7 percent of all of the 1.3 billion light-duty vehicles on the road now. That increases to 31 percent (672 million) of the 2.2 billion cars on the road by 2050. EIA’s projections show a tipping point: Sales of gas-and-diesel-powered cars will peak in 2038.

Southern Airways is also betting on an electric future, in the skies. The commuter airline company began in Olive Branch, Mississippi, in 2013 and has now relocated to Palm Beach, Florida. Last month, it announced a $250-million order of new planes, including 20 seagliders, from the Regional Electric Ground Effect Nautical Transport (REGENT) aerospace company.

The seaglider is an all-electric, zero-emission flying vessel, the company says. It docks in city harbors, where passengers are loaded. It floats on a hull and then a hydrofoil until it reaches open water. Then, it takes flight, cruising at 180 miles per hour, staying within 100 feet of the water’s surface. Stan Little, chairman and CEO of Southern Airways, called the seaglider a “groundbreaking innovation.”

“REGENT’s zero-emission electric vehicle unlocks an incredible amount of operating efficiency for our company while lowering costs, trip times, and our environmental footprint,” Little said.

Southern Airways’ seaglider service will begin in Boston, Nantucket, Palm Beach, and Miami.

Futurist is an occasional series focused on what comes next.

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Opinion The Last Word

Truckers Can Drive Climate Action

E-trucks can haul heavier cargo over longer distances while contributing to carbon reduction. (Photo: Scharfsinn86 | Dreamstime.com )

If the COP26 climate conference in Glasgow taught us anything, it’s that the climate crisis is already upon us and that it will take a worldwide effort to realize climate stabilization. The Glasgow Climate Pact, agreed upon at the conference, firmed up the global commitment to accelerate action on climate this decade. One-hundred-and-forty-six countries signed the pact, and we heard dramatic proclamations from the biggest polluters, including the United States, India, and even (in absentia) China.

But the true takeaway from COP26 can be summed up by United Nations Secretary-General António Guterres, who said, “[The pact] is an important step, but it is not enough.” Indeed, governments can set the targets and incentives, but private technology, investment, and ingenuity are the indispensable parts of the climate solution.

Take the unmitigated threat from freight. According to MIT, the trucks, planes, ships, and trains that carry billions of tons of cargo around the world each year make up 8 percent of global greenhouse gas emissions (GHG), and as much as 11 percent of warehouses and ports are included. According to the U.S. Department of Transportation, within the transportation sector, freight movement accounts for 27 percent of transportation GHG emissions, with the majority of emissions generated by trucking. Energy use and GHG emissions from freight transportation have grown at roughly twice the rate of passenger transportation emissions over the last 15 years. That is an extraordinary impact.

The good news is we already have the technology and the capability to reverse this trend.

Nations all over the world are witnessing the surge in electric vehicles. In fact, every major car company in the world — from Toyota to Rolls-Royce to GM to Tesla — is producing an EV next year. You will recall President Joe Biden was in an electric Hummer in Detroit only a few weeks ago to highlight his $1 trillion infrastructure plan — which includes billions in funding for a new network of electric charging stations, a true confirmation of the transition to EV. But freight trucks have somehow been lost in the electrification spotlight, despite the role of freight in contributing to GHG and the fact that around the holidays, when we see freight trucks more than ever, we can appreciate the demands we make upon drivers and the centrality of their vehicles to the supply chain. So why haven’t e-trucks taken off yet?

A global study by Deloitte confirmed that ­— despite the advancements in battery technology — one of the biggest concerns about EVs relates to driving range. This is also relevant to freight trucks. The real value in electrifying freight is in delivering zero emissions at a lower total cost of ownership while ensuring vehicle range and reliability. Some e-trucks, like Tevva’s, combine battery power with other renewable energy sources, in this case hydrogen through a small onboard fuel cell, to deliver a viable longer-range solution. By combining technologies, these e-trucks can haul heavier cargo over longer distances — and give freight operators full confidence to adopt and deploy new technologies across all duty cycles.

Freight fleet operators can contribute further to carbon reduction, particularly in cities, by adopting better routes and optimizing their energy consumption. Technology has a role to play here. By using software, e-trucks can have predictive range and routing capabilities that can reduce daily energy consumption and minimize their impact on the planet — while also lowering energy costs for fleet operators. Industry gains can also be made through carbon reduction initiatives such as delivery consolidation hubs and optimizing vehicle load to prevent lots of small commercial vehicles doing the job of a single larger vehicle. This type of logistical restructuring is long overdue. But with truck technologies now available to make immediate strides in our fight toward zero-emission freight, we can empower truckers to drive climate action.

Brian F. Keane is the president of SmartPower. Asher Bennett is the CEO of Tevva Motors.

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News News Blog

Ford’s $5.6B Blue Oval City Touted As “Transformative”

Credit: Ford Motor Co.

The Memphis Regional Megasite is proposed to become Ford Motor Co.’s high-tech Blue Oval City in an $5.6 billion investment expected to yield about 6,000 jobs. 

Company officials announced late Monday that Ford plans to build its F-Series pickups and advanced batteries at the West Tennessee site in Stanton. Ford said production there will “reimagine how vehicles and batteries are manufactured.”

The Tennessee site is part of an overall plan to manufacture Ford’s zero-emissions vehicles to scale with “the largest, most advanced, most efficient auto production complex in its 118-year history.” This plan also includes the construction of two BlueOvalSK Battery Parks to be built in central Kentucky for the production of batteries to power a new lineup of Food and Lincoln electric vehicles. Ford is also spending $90 million in Texas to train mechanics to work on electric cars. 

The total project is worth an estimated $11.4 billion and is what Ford called “the largest ever U.S. investment in electric vehicles at one time by any automotive manufacturer.” 

“This is our moment — our biggest investment ever — to help build a better future for America,” said Jim Farley, Ford president and CEO. “We are moving now to deliver breakthrough electric vehicles for the many rather than the few. It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers and shareholders.”

Ford said Blue Oval City will be among the largest auto manufacturing campuses in U.S. history and “will usher in a new era for American manufacturing.”

The 3,600-acre campus — covering nearly six square miles — will encompass vehicle assembly, battery production and a supplier park. The mega campus is designed to add more sustainability solutions, including the potential to use local renewable energy sources such as geothermal, solar, and wind power.

“West Tennessee is primed to deliver the workforce and quality of life needed to create the next great American success story with Ford Motor Company and SK Innovation,” said Tennessee Gov. Bill Lee. “This is a watershed moment for Tennesseans as we lead the future of the automotive industry and advanced manufacturing.”

Here’s what some leaders are saying about the Ford news:

• Tennessee Valley Authority CEO Jeff Lyash — “Reliable, low-cost, clean energy attracts world-class companies like Ford to the Tennessee Valley. Bringing jobs and capital investment to this region is what we do at TVA — it’s a fundamental part of our mission — and by helping to bring companies like Ford to this region, we are creating the jobs of the future.”

• Tennessee state Sen. Brian Kelsey (R-Germantown) — “This is tremendous news for the Shelby County suburbs, for Memphis, and for all of West Tennessee. It will have a huge economic impact on our region.  

“These are high tech jobs, and the state remains committed to providing the skilled workforce necessary to draw new industries to locate here. Many of us in the legislature have worked for many years to promote the Memphis Megasite, and I’m thrilled to see Gov. Lee bring this dream to reality.”

• Tennessee state Sen. Raumesh Akbari (D-Memphis) —  “West Tennesseans will build the next generation of electric vehicles in America. That’s an amazing reality today. It’s actually difficult to overstate the significance of this announcement and the potential for transformative change that an underserved community will see from this historic investment. 

“As America gears up to own the electric vehicle marketplace, I will stand in full support of a project that puts our families to work producing these vehicles with good wages and benefits.”

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News Blog

Utilities Partner for “Electric Highway”

Tennessee Valley Authority

A new, multi-year plan will electrify roads from Chicago to Orlando, and from Richmond to West Texas. 

Six major utilities formed the Electric Highway Coalition earlier this month for a network of charging stations along roads in 16 states in the South and parts of the Midwest. The coalition includes American Electric Power, Dominion Energy, Duke Energy, Entergy Corp., Southern Co., and the Tennessee Valley Authority (TVA). 

The plan strives for a “seamless network” of DC, fast-charging stations to travel greater distances without the worry of “range anxiety,” or the fear of a low car battery with no close charger. Coalition members are working now to set locations for charging stations. Those sites will be along major highway routes with easy access and amenities, it said. The chargers for the station will be capable of getting drivers back on the road within 20-30 minutes.    

“Together, we can power the electric road trip of tomorrow by ensuring seamless travel across a large region of the U.S.,” said TVA president and CEO Jeff Lyash. “This is one of many strategic partnerships that TVA is building to increase the number of electric vehicles to well over 200,000 in the Tennessee Valley by 2028.”

The coalition announcement comes after TVA teamed up with the Tennessee Department of Environment and Conservation (TDEC) to develop and fund a fast-charging network across Tennessee’s highways and interstates. 

In mid-November, the TVA board approved a new commercial rate structure just for electric vehicle charging stations. The vote was intended to support the expansion of EV charging infrastructure across the region, removing a big barrier for consumers to, perhaps, buy more electric vehicles. 

Together, we can power the electric road trip of tomorrow by ensuring seamless travel across a large region of the U.S.

TVA president and CEO Jeff Lyash

TVA is also building partnerships with a number of agencies to increase the amount of electric vehicles in its seven-state service area. The push could bring up to $40 million in programs to support the adoption of electric vehicles over the next five years.  

Lyash said electric vehicle adoption will spur economic activity, create jobs, keep refueling dollars in the local economy, reduce “the region’s largest source of carbon emissions,” and save money for drivers and businesses.  

“Tennessee is on the forefront of the electric vehicle revolution thanks to its robust automotive manufacturing sector, supply chain capabilities, its highly trained workforce ,and its commitment to developing a reliable, fast-charging network,” said TDEC Commissioner David Salyers. “TVA’s participation in this coalition is a critical step in ensuring Tennessee’s fast charging network connects regionally and nationally, providing efficient transportation for future travelers while improving air quality in our state.”

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Opinion

Electric Vehicles: FedEx “yes,” buyers “no”

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Starkly different views on the future of electric vehicles from last week’s FedEx Investors and Lenders Meeting and from car buyers in Memphis and the rest of America.

Fuel-conscious FedEx is committed to electric vehicles as part of its strategy to lower costs and decrease reliance on fossil fuel. Last week during a question-and-answer session with analysts, David Bronczek, CEO of FedEx Express, said all-electric rather than hybrid electric vehicles “may be the best choice for us.” The company is interested in both, along with vehicles powered by natural gas as it strives to increase fuel efficiency.

The buying public is not very interested yet. That goes for drivers in Memphis, which was chosen in 2011 as one of the key sites for charging stations, and car buyers in general. Nissan moved manufacturing of the Nissan Leaf from Japan to Smyrna, Tennessee starting this year. The goal is 150,000 vehicles a year. The Chevy Volt runs on a battery made at a reopened GM plant in Detroit. Both electric cars can be purchased in Memphis for prices in the $30,000s for the 2012 model and more than $40,000 before rebates for the 2013 model.

Detroit newspapers (Go Tigers!) this week have been reporting the big flop by makers of electric vehicles and their batteries. Sales for all makers have been anemic, according to a story in the Detroit News. In the debates, presidential and vice-presidential candidates, while against high gas prices and for alternative energy sources, differed on the merits of grants for makers of electric cars and how whether subsidies went to a company in China.

There is nothing ambiguous about investor interest in electric cars. It has just about hit rock bottom. ECOtality, the publicly-traded (NASDAQ: ECTY) California-based company behind “The EV Project” in Memphis and other cities, is barely hanging on. Five years ago it was selling for $22 and in 2009, after it received a federal stimulus grant of $114.8 million, the price was $17. When ECOtality made its announcement in February of 2011 that it was expanding to Memphis, the stock was $4. Today it is 45 cents.