Voltage Valley is primed for more growth
Five years ago this month, the first faint sparks blew over the Mahoning Valley that many hoped would intensify to rebrand the region as the Voltage Valley of America. On Dec. 5, 2019, executives of General Motors and LG Energy Solution announced plans for a state-of-the-art electric-vehicle battery-cell production plant in Lordstown in the shadows of the recently shuttered Lordstown GM Assembly Complex.
Flash forward to December 2024: Ultium Cells’ Lordstown facility has become one of North America’s leading producers of battery cells for EVs, and its employment levels have zoomed from the projected 1,100 workers to today’s 2,200 workers and counting.
Clearly our Voltage Valley has charged up with electrifying speed and force.
Against that backdrop, celebration clearly was in order last week when corporate and United Auto Workers leaders gathered at the plant to celebrate another remarkable milestone: production of the plant’s 100 millionth battery cell for the growing EV market.
The sky-high status of the plant’s value to the future of ground transportation in America was reflected in the stratospheric stature of the movers and shakers who attended. Among them were LG Energy Solution chief executive David Kim, who flew over the Pacific Ocean to attend; J.P. Clausen, GM’s executive vice president of global manufacturing and sustainability; Mike Booth, United Auto Workers national vice president; and Kee Eun, chief executive of Ultium Cells.
Amidst the hoopla came a reminder of the raison d’etre for the plant. As LG’s CEO Kim said, the Lordstown plant “represents a major step forward in our commitment to a zero-emissions future.” From such informal commitments focusing on social responsibility to more formal legal mandates for reducing such pollutants, it’s clear the future looks bright for EVs in general and the Lordstown Ultium plant in particular.
Of course, some may be skeptical of such claims, given some of the exaggerated doomsday scenarios projected recently onto the EV industry. Most are grounded in myth.
Yes, a moderate slowdown has impacted the EV industry in the United States in recent months, but nonetheless the market remains clearly locked in a trajectory of growth.
Need proof? Just check recent sales reports from some of the largest electric-vehicle manufacturers in the United States. Total EV sales from July through September show purchasers drove about 350,000 of them off showroom floors, compared with about 310,000 in the third quarter of 2023.
That pace is even faster for GM, which showed a 60% increase in this year’s third-quarter EV sales over 2023 levels. GM’s new rank as second strongest EV seller – second only to Tesla – should comfort workers at Ultium and provide hopes for even additional employment gains there.
Another myth impeding more robust EV sales focuses on cost. Yes, the average EV costs more than the traditional gas guzzlers, but that price gap is narrowing. According to caredge.com, in January 2020, the average electric car price was $54,668, or 42% higher than the overall market average. By 2023, the average cost of a new EV was $53,376 or about 10% higher than the average price in the overall new car market.
In addition, some economy electric vehicles, such as the Chevrolet Volt, sell for as little as $27,000.
Another widely circulated myth argues that electric vehicles don’t have enough range to handle daily travel demands. The truth is that electric vehicle range exceeds that needed for average daily use. According to the National Household Travel Survey, over 73% of all on-road passenger trips were 10 miles or less, and over 98% were less than 75 miles. Today, most EV models go above 200 miles on a fully-charged battery.
And as caredge.com notes, electric vehicles can be plugged into the same type of outlet as your toaster. When you need to charge while on the road, you’ll find over 72,000 stations and 196,000 EV charging stations, and that number is going to grow significantly thanks to the $7.5 billion appropriated in the Bipartisan Infrastructure Law committed to massively increasing the number of charging stations across the nation.
Doubting Thomases aside, the future path of EVs and of the critical battery cells needed to produce them clearly is veering headlong toward increasing popularity and profitability.
Thankfully, that path crosses directly through our region, promising continued growth, blossoming of support industries and greater diversification of our rebounding economy. With 100 million battery cells behind it, we’re counting on Ultium Cells – now the Valley’s largest private employer – to lead the way in bringing additional jolts of economic vitality to our proud region that has more than earned the bona fide moniker of Voltage Valley.