These Red And Purple States Are EV Epicenters. What If Trump Wins?

North and South Carolina are seeing an EV jobs boom. But politics could change that soon—and who really wins then?

When one thinks of American technology and innovation, Silicon Valley is usually the first place that comes to mind. But in recent years, another region of the United States is going all-in on EVs, challenging the West Coast’s sector dominance. That’s the Carolinas. 

North Carolina will be home to Toyota’s upcoming hybrid battery manufacturing facility. It recently saw the opening of European battery manufacturer Alpitronic’s U.S. headquarters and charging giant Kempower’s U.S. office. There’s also Thomas Built’s electric school bus manufacturing facility, VinFast, Natron Energy and more. 

But the two states are part of a nationwide boom that few people would want to see disappear if, for example, Trump makes good on his threats to end Biden’s EV and climate subsidies. “We need to future-proof our economy and make sure we're getting modern innovative companies here,” says Christopher Chung, the CEO of the Economic Development Partnership of North Carolina.

The Lay Of The Land: Why EV Manufacturers Are Going East

North Carolina’s popularity with electric vehicle ventures stems from several avenues. These include lower labor costs, cheaper taxes, proximity to coastal ports and existing car manufacturing ecosystems and a diversified workforce, thanks to local universities and technical colleges. 

“We're a manufacturing state, historically,” Chung told InsideEVs. “If you're looking at doing EV assembly or battery manufacturing, knowing and working with a state that has a strong manufacturing history is really important. 

But these factors alone aren’t enough to woo manufacturers considering the state. The rest resides within the locality’s ability to incentivize companies to set up shop. “Incentive packages are usually split at both a state and local level because typically a company is not just choosing a state to do business in, but they're choosing a specific county and sometimes a specific city within that county,” Chung said. 

While North Carolina has its arsenal to facilitate EV growth, the federal government can do even more. The 48C section of the Inflation Reduction Act (IRA) provides tax credit incentives to businesses in the clean energy space looking to set up shop in the United States. “The 48C tax credit is probably one of the most common ones,” Chung said. 

Photo by: Toyota

A possible Toyota electric SUV would be powered by batteries from its new North Carolina plant.

Portions of the IRA incentivize companies to establish facilities in the United States. The next part is on the state level. If a certain state offers a competitive incentive package, then there’s a good chance the business will reside in that state. And North and South Carolina just happened to be more competitive states. In other words, the IRA is like a shiny new car dealership. Once you go inside, you’ll choose the car that best suits your needs. (You want a three-row EV with all-wheel-drive? There’s the Kia EV9 for that.)

Chung said these incentive packages are usually complex as they have to weigh out numerous factors. “So our job is to try to understand, of course, what's the employment, investment, and the wages that a company is pledging to put here in the state,” he said. Another factor is what the company has to benefit the state.