Parts used inside the Stellantis Kokomo Transmission Plant, slated to build electric vehicles. Tim Bath | Kokomo Tribune
•
•
By the numbers
Figures related to the auto industry in Indiana:
• Manufacturing companies: 22,132
• Automotive companies: 8,053
• Unique internal-combustion engine (ICE) companies: 769
• Unique electric vehicle (EV) companies: 201
• ICE & EV combined companies: 3,535
• Other automotive companies not related to unique ICE and/or unique EV Companies: 3,548
Source: Purdue University
INDIANAPOLIS — Indiana’s automotive industry is in for a big shock from electric vehicles.
That’s according to the first report released last month by the Electric Vehicle Production Commission, a 10-member committee created last year by Indiana lawmakers and made up of legislators and industry leaders.
The study comes as major automakers such as Stellantis, Honda Indiana, General Motors and Toyota Indiana in the past two years have announced investments that total more than $10.4 billion to transition their Indiana facilities to electric vehicle production.
Those investments are part of the push to phase out internal-combustion engines as the U.S. market for EVs is projected to grow from 1.45 million to 6 million vehicles by 2030, according to research from Purdue University.
What does that mean for the state’s deeply imbedded auto industry? If handled correctly, it could be a major opportunity for growth, according to the report.
But that will depend on how quickly the industry’s aging workforce can transition to new technologies. The study found more than 40,000 Hoosier workers employed by businesses that make parts or products only for gas-powered engines. The number of workers in Indiana employed by EV-only businesses is 9,800.
If nothing is done to address the shift to EVs, that labor market could suffer a 30% reduction, according to a Purdue study cited by the report.
“As the technology in electric vehicles continues to develop and the mass production of EVs expands, the need for a more specialized workforce increases,” the report says. “Workers will need to possess not only traditional competencies, but will need to add problem-solving skills, adaptability, a collaborative mindset, and an openness to change.”
That need can be met, the report argues, by beefing up training and education resources in areas near major auto plants and suppliers. Training at Ivy Tech Community College sites and in other programs would be transitioned away from combustion-engine production to battery-powered vehicles.
The commission also recommends installing more training options at secondary education centers around the state that offer courses in EV auto manufacturing, supply chains, vehicle assembly and recycling and reusing batteries.
The state has already started consolidating educational resources related to EVs on a new website called the EV/Battery Portal. The site lists online and in-person class offerings at training sites such as Purdue and Ivy Tech and lays out pathways to earn certifications and degrees to land jobs in the EV market.
The portal will also enable Indiana companies to post customized learning pathways based on their specific manufacturing process and the needs of workers.
The areas most primed for growth, the report notes, are jobs related to the second-life of EV batteries, which can be re-manufactured, repurposed or recycled after being used in a vehicle. The Heritage Group and ReElement Technologies are two Hoosier companies working in the field.
Other sectors that will likely expand include battery- management systems, wiring, software and control development, EV technology for heavy-duty trucks and buses, and building out EV-charging infrastructure.
However, the shift toward EV could easily be a deathblow for smaller companies that supply parts used only in gas-powered vehicles.
About 25% of auto companies will be impacted “severely” and lose significant amounts of revenue while the market transitions to EVs, according to the Purdue study. In 14 counties alone, that loss could add up to roughly $1 billion and 4,500 jobs.
“Ignoring the threats and a lack of action will lead to tragic reductions in revenues and jobs,” the study says. “Managements that take action now can rescue their individual companies and avert dire county situations.”
The report suggests the state’s next steps should include evaluating and setting battery recycling goals and reviewing charging infrastructure needed to support EVs.
Other areas to consider include developing a plan to strengthen the supply chain for raw materials needed for EV components and expanding specialized workforce training and education for all levels of employees.
In the end, the commission argues, the move to EVs will disrupt the state’s auto industry, but that disruption also comes with the chance for companies to pivot and become industry leaders.
“Anchored by research, education, and training from world- class universities and colleges, the automotive industry’s strength lies in its greatest tradition: modernization,” the report says.
© 2024 Community Newspaper Holdings, Inc.