The Southeast region of America is rapidly transforming into a hub for electric vehicle and battery production, posing a challenge to Detroit, traditionally the heartland of the auto industry that is home to the Big Three — Ford Motor Co (NYSE:F), General Motors (NYSE:GM) and Stellantis NV (NYSE:STLA).
What Happened: The Southeast region is becoming increasingly attractive to foreign auto and battery manufacturers aiming to penetrate the burgeoning American EV market, as reported by the Financial Times.
This trend has been catalyzed by the substantial tax credits and environmental subsidies made available through the Inflation Reduction Act enacted by the Biden administration.
Since 2010, the region has seen investments exceeding $70 billion in EV and battery production, outstripping the Midwest’s $51 billion, as per the report. Michigan is still the investment leader with almost $24 billion, but Georgia and Tennessee are not far behind.
The Southeast’s rise as a key player in the auto industry has been in the making for quite some time, with European and Japanese manufacturers at the forefront of this shift. Examples include BMW‘s (OTC:BMWYY) plant in Spartanburg, South ...