economy
February 1, 2026
How the EV pullback is affecting factories and jobs in the South
Automakers, suppliers and battery makers were funneling hundreds of billions of dollars into EV-related manufacturing in the U.S. Now it's all in question.
TL;DR
- Automakers and battery suppliers invested over $200 billion in U.S. EV and battery manufacturing from 2000-2024.
- Approximately 84% of battery investments and 62% of EV manufacturing investments went to Republican-led districts.
- Almost half of all EV investments were allocated to the Southeastern U.S.
- Federal EV incentives enacted through the Inflation Reduction Act were removed, leading to a drop in EV sales.
- Companies like Hyundai are shifting production plans to include a mix of hybrids and EVs, with lower projected EV sales.
- Industry experts estimate automakers may face at least $100 billion in write-downs on their EV investments.
- Ford and General Motors have already announced significant charges related to their EV businesses.
- EV sales forecasts for 2030 have dropped significantly from initial projections.
- Suppliers like Bosch are also adjusting to lower EV demand, redirecting staff and focusing on traditional vehicle components.
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