Ohio Can Lead The Electric Vehicle & Clean Energy Economy

Pushed primarily by projected electrical car (EV) demand, the worldwide lithium-ion battery business and its related provide chain have dedicated greater than $600 billion in funding in direction of launching new electrical car fashions. This consists of large-scale funding in mineral extraction, chemical processing, anode and cathode manufacturing, cell manufacturing, recycling amenities, and the supply of EV element components.

The GM and LG Chem announcement of the Ultium Cells battery manufacturing facility has opened up new prospects for Ohio. Already a powerhouse within the automotive provide chain, Ohio has a singular alternative to seize EV provide chain manufacturing funding and set up the state as a hub for the EV and battery industries. Nonetheless, competitors for EV provide chain manufacturing funding in North America — and across the globe — is intensifying and offers are being negotiated and introduced proper now, making it important for the state to maneuver shortly. Selections revamped the subsequent two years will form the footprint of auto manufacturing for many years.

Recognizing this urgency, JobsOhio and NRDC partnered in an effort to develop Ohio’s EV provide chain manufacturing presence whereas decreasing transportation sector emissions. In a brand new report, Ohio Battery Supply Chain Opportunities, Benchmark Mineral Intelligence — a number one battery business evaluation agency — offers an outline of Ohio’s key benefits when making an attempt to seize these investments and shield its automotive heritage. Whereas the report emphasizes Ohio’s infrastructure and logistics, its in depth expertise with the automotive provide chain, and its extremely expert workforce, the report makes particular point out of a brand new asset that Ohio can use to draw large investments, photo voltaic vitality.

As we work to establish alternatives to leverage the state’s strengths to create jobs in fast-emerging world industrial sectors, we’ve the potential to draw investments that can maintain our economic system for the longer-term. The battery supplies provide chain offers a compelling alternative for Ohio to take a management place.

Lithium-Ion Battery Markets

The annual lithium-ion battery market is already estimated at greater than $35 billion with projections that it’ll triple over the subsequent 5 years. Lengthy-term forecasts counsel that this market will entice as a lot as $620 billion of funding over the subsequent 20 years.

In accordance with Benchmark, as of 2017 there have been projected to be 17 lithium-ion gigafactories (vegetation able to producing larger than 1GWh yearly manufacturing). By the fourth quarter of 2021, this quantity has grown to 261 gigafactories worldwide. The USA’ share has elevated from three in 2017 to having merely 18 battery megafactories in varied phases of growth at present, most of which have been introduced within the final six months. Of those 18, solely four are at the moment lively; yet one more than in 2017. As battery manufacturing has ramped up, battery costs have plummeted, resulting in projections that EVs will attain worth parity with inside combustion autos by the mid-2020s.

Ohio Was an Early Mover

The excellent news is that there are clear indicators of progress in our state. With the $2.three billion Ultium Cells battery manufacturing plant funding, Ohio achieved an early-mover benefit that has positioned the state to draw different parts of the availability chain. Nonetheless, the availability chain that feeds the plant stays, for the time being, principally in Asia. We want a daring plan to deliver that offer chain to Ohio. In spite of everything, Ohio’s manufacturing and analysis capabilities, mixed with the state’s extremely expert workforce, makes clear there’s no higher place for this business to plant its roots.

Ohio is already dwelling to a number of firms lively within the provide chain, together with BASF, which produces cathode supplies for lithium-ion batteries in Elyria, and Dana Corporation, which produces thermal administration techniques for Li-ion batteries. And a number of other Ohio universities are additionally leaders in battery analysis and growth, together with Ohio State, Wright State, Case Western Reserve University, the University of Dayton, and the University of Akron. Moreover, Glenn Research Center manages Li-ion battery growth for the Worldwide Area Station. And the Air Force Research Lab at Wright Patterson Air Drive Base helps analysis on lithium ion for navy functions.

Ohio’s Rising Photo voltaic Vitality Presence Offers a Key Benefit to Ohio

Ohio is experiencing important photo voltaic progress proper now. In accordance with a 2020 study by Ohio University, the Ohio solar industry is poised to take a position practically $20B in rural counties across the state and is producing greater than 55,000 development jobs that may result in dignified careers within the constructing and development trades. With greater than 8,400 megawatts of utility scale photo voltaic initiatives both already permitted or pending earlier than the Power Siting Board, Ohio is listed as a prime state for photo voltaic progress within the Midwest.

The state’s rising photo voltaic presence is proving to be a key asset when attracting new funding. Current manufacturing bulletins just like the Nestle Purina facility close to Cincinnati and the large Intel announcement in Licking County all include renewable vitality buying targets. And as Benchmark lays out of their new report, the automotive economic system can be trying to buy photo voltaic vitality, and so they need it as shortly as potential and near their manufacturing amenities.

The explanations for this are each easy and complex on the similar time. Many Fortune 500 firms wish to cut back their GHG emissions and meet company sustainability targets that stem from buyer expectations and shareholder calls for, however they’re additionally motivated by the monetary proposition. Whereas a enterprise can successfully cut back its carbon footprint by buying photo voltaic vitality or renewable vitality credit from different states, by contracting with Ohio-based renewable vitality property these firms can successfully hedge towards future electrical energy value escalation and drive further financial enlargement throughout the state. Merely put, these Fortune 500s wish to the big pool of photo voltaic initiatives underneath growth throughout the state as a key to their vitality procurement technique as they proceed to deliver new load into the state.

Now Is the Time to Act

Ohio is at a key second. We can’t afford to overlook alternatives to rebuild a extra resilient economic system that places Ohio — and the US — first. Although it might not be apparent on the floor, the worldwide transition to electrical transportation is effectively underway. As Ohio continues to establish areas for financial progress, the state ought to develop a plan to seize this chance.

The time to behave is now. If we sit nonetheless, it would solely develop into more durable to draw future automotive provide chain funding — inserting hardworking Ohioans and their households in danger. This can be a danger we can’t afford to take, and one we are able to keep away from. Let’s reshore our manufacturing potential and put the nice women and men of Ohio to work in sustainable industries with good-paying jobs.

Initially revealed by the NRDC. By Daniel Sawmiller, Ohio Vitality Coverage Director, Local weather & Clear Vitality Program.

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