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A battery boom is taking place in America, with public and private sectors placing major bets on electric vehicles. Companies announced more than $73 billion in planned projects in 2022 alone. Meanwhile, the Biden administration plans to invest more than $135 billion to build the country’s “electric vehicle future.” More U.S. factories mean more jobs at home and less reliance on outsourcing. But where will the workers come from?
The Biden administration’s historic investments are primarily dedicated to boosting manufacturing, production and processing of EV batteries, as opposed to workforce development. The need for talent is not being overlooked, however. Accredited technical courses and private-public partnerships on the state and federal levels are emerging. One example is the Georgia Department of Education. The department has created a career pathway program for high schoolers interested in EVs in response to an upcoming Rivian plant. Additionally, the Department of Energy and industry partners announced a $5 million lithium-battery workforce initiative and a three-year college student competition. But more will be needed to avoid a talent shortage and subsequent supply chain disruptions.
Let’s look at the funding disparity for workforce development. There’s a stark difference in federal support when you compare the investment for workforce development ($5 million) and the investment for infrastructure and production ($135 billion-plus). The most obvious course of action is to redistribute funds from the country’s multi-billion-dollar commitment to talent pipeline efforts. The allocation needs to match the expected job demand. Without the proper staffing, the current investments in manufacturing facilities may only lead to future financial losses for companies, governments, local communities and the economy at large. A lack of skilled workers may weaken the battery supply chain, as well as America’s aspirations to lead the EV industry.
Rapid job growth is another sign it’s time to double down on skills development. The number of jobs in battery electric vehicles grew the fastest of any energy technology. According to a recent DOE jobs report, those jobs increased by 28,366, or 27%, from 2021 to 2022. Analysts believe this trend will continue. The Economic Policy Forum expects new EV jobs to balloon to more than 150,000 by 2030 if both sales and vehicle market share of U.S.-assembled vehicles increase.
EV job training, with low entry barriers, should be a top priority for all stakeholders. Core skills sets are not readily available in the general workforce. Building a gigafactory, for example, involves a very complex series of tasks, along with coordinating production processes; more specialized work is required. A few required competencies for this field include equipment maintenance, troubleshooting production equipment, quality standards, safety protocols and several types of engineering. Creating career paths for the jobs most in demand are table stakes for maintaining a stable supply chain.
The workforce evolution isn’t solely driven by demand for new battery technology and new energy vehicles (NEVs), but rather a transfer of demand from an internal combustion engine to battery and NEV. Therefore, it’s a matter of up-skilling and re-skilling, on top of initial training, for the new automotive powertrain value chain — from design and development of new batteries and battery electric vehicles to recycling and end of life.
The talent gap is already revealing itself in one state. In a press conference, Ohio Lt. Governor Jon Husted estimated there’s 58,000 jobs in fields related to EV manufacturing, but the state has about 25,000 high school graduates a year. To pre-empt the workforce shortage, Ohio launched its EV Workforce Strategy to increase career awareness, widen the talent pool and establish partnerships. States like Illinois, Indiana, Georgia and Michigan have outlined similar EV workforce plans, with Illinois Governor J.B. Pritzker to allocate $6 million for the Energy Transition Navigators Program, which aims to provide outreach, education and recruitment.
Among these promising state-level actions, the DOE’s battery workforce initiative will support up to five pilot training programs, and develop training materials. What’s missing is a federally-fund, country-wide EV skills network that will collaborate with the DOE and unify those local governments with existing workforce strategies, as well as finance others who want to ramp up training at scale.
If the talent gap grows, job vacancies will become one of the biggest threats to battery quality. Batteries with defects or anomalies will set back any gains achieved by industry players, as customer claims and reputational issues arise. When production processes run smoothly, it means fewer workplace injuries, fewer bottlenecks, limited delivery delays, minimal recalls and more revenue. A skilled staff is one way to maintain and maximize the battery life cycle.
America’s battery supply chain is still in development, but to ensure its resilience and reliability will call for best-in-class professionals. The encouraging news is that most of the pieces are in play. While the challenge ahead will be tough to surmount, the U.S. has an extended winning streak when it comes to innovation.
Augustin Brochot is vice president of innovation & strategic venture, and Attila Vitos is global battery & NEV expert director, both of TRIGO Group.