The auto workers’ strike has entered its third week, with workers’ pay in electric vehicle battery plants being a major point of contention. These plants, predominantly located in the southern United States, where the workforce is mostly non-union, are a key focus of the strike.
Over the past three years, more than $90 billion has been invested in battery production across the country, resulting in around 70,000 manufacturing jobs. This growth is concentrated in eight states: Michigan, Indiana, Ohio, Kentucky, Tennessee, North Carolina, South Carolina, and Georgia. These states together form what is now known as the “Battery Belt.”
Interestingly, many of these states lean politically conservative and have been resistant to climate legislation, despite their significant contributions to the booming electric vehicle manufacturing industry. For instance, Georgia, which has attracted substantial investment, recently introduced a new tax on public EV charging.
Nevertheless, towns like Commerce, Georgia are experiencing an economic renaissance due to the manufacturing boom. Commerce, with a population of 7,700 and steadily growing, is witnessing a revival of business activity. Mayor Clark Hill remarked that new businesses, including a brewery, are opening in the downtown area, attracted by the multi-billion dollar investment by a company called SK On.
SK On, an affiliate of the South Korean conglomerate SK Group, operates a massive battery cell manufacturing plant in Commerce, producing batteries for electric vehicles. According to Jae Won Chey, executive vice chairman of SK On, the factory is as large as “13 football fields” and has the capacity to make batteries for over 400,000 cars. The company supplies batteries to automakers like Ford and is part of a larger trend of foreign battery manufacturers setting up new plants in the United States to be closer to their customers. Despite recent job cuts, more than 3,000 people are employed at SK On’s Commerce plant, offering employment opportunities to individuals like Desmond Salmon, who lives nearby.
In Covington, Georgia, Mike O’Kronley, CEO of Ascend Elements, is involved in the domestic EV supply chain. His company specializes in recycling used EV batteries, extracting valuable metals such as nickel, cobalt, and lithium. This recycling effort plays a crucial role in the growing EV industry.
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