Hyundai’s Savannah area metaplant: The Southern Automotive Corridor’s signature win to date?

For decades, the rumors that Volvo and Audi would build full assembly plants in the Southern Automotive Corridor would surface, then go away, then surface again. One rumor ended when Volvo announced it would build its first vehicle plant in the Western Hemisphere in 2015 near Charleston, S.C., in Berkeley County.

Who placed second in Volvo’s site search? Why, none other than a site near Savannah in Bryan County, Ga. Needless to say, the folks in Savannah felt that they had won the Volvo deal and were seriously bummed when they learned their place earned the bridesmaid status.

Seven years later, Hyundai showed up and announced the largest automotive project in the South’s history, a nearly $8 billion battery and assembly facility that will eventually house over 8,000 workers. Not a bad consolation prize, huh?

Hyundai broke ground on the massive plant near Savannah in October of 2022. The goal of the Korean automaker and its battery partner LG Energy is to begin production in early 2025 in order to begin capitalizing on new federal tax credits for EVs manufactured in the U.S. However, Hyundai officials have stated that production could begin as early as October of 2024.

The complex is enormous, encompassing 3,000 acres. Hyundai and LG Energy’s manufacturing process will be a blend of artificial intelligence, robotics and human labor for a “smart factory,” putting the meta into a “Metaplant.” Suppliers to Hyundai so far have made commitments for over 6,000 jobs and an additional $2.7 billion in new investments.

According to the Atlanta Journal Constitution, “The facility will feature a glass-encased conveyor belt “bridge” to transport vehicles from the factory’s paint shop over to final assembly. Jumbo Park, the plant’s head of engineering, said the elevated and lit passage will be visible from Interstate 16.

“One of the campus’ parking lots will feature a solar-panel canopy, which Park said will provide 5 percent of the factory’s electricity. The rest will be obtained through power purchase agreements, with the goal of sourcing 100 percent of the facility’s electricity from renewable sources.

“Visitors to the plant will be able to explore a greenspace at the front of the facility abutting the interstate, which officials said will be larger than Savannah’s iconic Forsyth Park, which spans more than 30 acres. The goal, Park said, is to “connect the community with the people who work in the plant.”

“For employees, on-site amenities will include restaurants, stores, a fitness center and health clinics,” Hyundai officials said.

Hyundai has not announced which models it will assemble at the Georgia plant. However, officials have said they will make electric models from the company’s three brands. Those would be Kia, Hyundai and the luxury line, Genesis. First year output is expected to be 300,000 EVs.

 

Georgia hits the jackpot with clean energy jobs

Georgia, with a large electric vehicle industry that is just emerging, is second only to Michigan with the number of new and expanded clean energy projects announced since August, when President Joe Biden signed the Inflation Reduction Act (IRA), which provides incentives for clean air application in manufacturing and other industries.

Nearly 20,000 jobs are being created in Georgia in new clean energy projects, a full 10 percent of the 200,000 expected to be created since the signing of the IRA. The Democrat’s comprehensive health care and clean energy law included billions of dollars in tax credits for the private sector to transition from fossil fuels to clean energy. Billions have already been gifted to those such as Hyundai, Toyota and other automakers as well, as in new hydrogen fuel projects and in carbon capture. Deals in those fields announced since the IRA was implemented are in the hundreds of billions. One of the largest clean energy projects ongoing is Hyundai and SK’s investments throughout the South, and more than $14 billion in Georgia alone.

 

RurAL on a winning streak, as is the rural South in general

Economic developers from rural communities in Alabama attended the RurAL Summit in November that was sponsored by the Alabama Department of Commerce. It was held at the Central Alabama Community College.

Since 2020, the state’s rural counties have attracted over $4 billion in new capital investment through a series of economic development projects expected to create more than 5,400 jobs, according to Commerce estimates.

Last year alone, new projects landing in Alabama’s “targeted,” or rural, counties will bring $1.8 billion in new investment and 1,900 jobs to communities such as Courtland, Selma, Greenville, Fayette and Cusseta.

Governor Kay Ivey, a native of Wilcox County, told the economic developers gathered at the Summit that she is committed to helping spur growth across all of Alabama, particularly in the state’s rural areas. MadeInAlabama.com

 

Who said “80 percent of all new jobs are created by existing industry?” Then, again, 100 percent of all lost jobs are created by existing industry

We have known for decades the fable that 80 percent of all new jobs are created by existing industry. It is just untrue. It is a different percentage in the South in any given year. Yet, we are quite sure that 100 percent of lost jobs are created by existing industry.

Sadly, that happened in Ardmore, Okla., in November, and residents of the city were stunned. “No one saw it coming,” said Bill Murphy, CEO of the Ardmore Development Authority, when Michelin announced it is winding down tire production at the plant that houses 1,400 workers. Michelin is Ardmore’s largest employer and a manufacturing anchor for Southern Oklahoma’s economy.

The plant, which opened in 1970, will close by the end of 2025, or sooner. Michelin officials cited changes in the passenger vehicle market, including larger tires for SUVs and new designs for electric vehicles. The company made the decision to pass on modernizing the plant for next-generation tires. The rubber-making line at the plant will continue to operate to deliver product to other Michelin tire plants in the U.S.

 

Ford is postponing production at second EV battery plant in Kentucky

“Originally, Ford announced two electric vehicle battery plants at the former Glendale megasite in Hardin County, Ky. The first facility is well under construction; however, the domestic automaker is postponing the second plant as it weighs the market. Officials at Ford are “slowing down” investments in electric vehicle production given the “dynamic” market of EVs at this early date of the new industry. Ford has also slowed production and future capacity at plants in Michigan to better match EV demand.

 

Port of Brunswick (Ga.) aims to become largest vehicle export/import port

In October, Georgia Ports Authority CEO Griff Lynch outlined the growth schedule for the Port of Brunswick as it expands to surpass the Port of Baltimore as the nation’s largest port for roll-on, roll-off cargo. The Georgia port is adding a fourth ship berth at Brunswick’s main terminal and is deepening and widening the harbor.  “We will be the No. 1 port when we stand before you at this event in 2026,” Lynch told members of the Brunswick Golden Isles Chamber of Commerce at the Jekyll Island Convention Center.

 

Developers granted approval for additional phases of industrial parks in Huntsville, Ala.

“The Huntsville Planning Commission granted approval for additional phases to two industrial parks in the Limestone County part of the city. Both parks are near major employers Mazda Toyota Manufacturing, Amazon, Buffalo Rock and Polaris will total more than 200 million square feet when completed. The commission granted preliminary approval of the Huntsville West Industrial Park and layout and approval of phase three of Airport Properties being developed by the Huntsville Logistics Center. Triad Properties and Fairway Investments have already started work on the first building in the Huntsville West industrial Park, a 385,000-square-foot facility that will feature 32-foot minimum clear heights, 60-foot speed bays, 84 truck docks, a 185-foot truck court with 60-foot apron, space for 198 car parking spaces and 96 trailer parking spaces.” AL.com

 

EV materials project lands outside the heart of the industry in the Southern Automotive Corridor

A North Carolina county on the coast has landed a major economic development project. Epsilon Advanced Materials, an India-based manufacturer of battery materials, is planning to invest roughly $650 million to build its first North American factory in Brunswick County, N.C., far outside the spine of the Southern Auto Corridor, which now is I-65 and I-75 (considering Hyundai’s metaplant near Savannah and other projects). The company could create 500 jobs over three years to produce natural and synthetic graphite anode material.

 

Big River Steel opens new electrical steel line at its plant in the Arkansas Delta

U.S. Steel’s Big River plant in Osceola, Ark., has opened a new electrical steel line that will position the company as a key supplier in the electric vehicle market. The new steel product is ultra-thin with all the magnetic properties needed for EVs. No electric vehicle, motor or generator today is operational without the steel grades needed to transform electrical power into usable energy.

 

Mercedes-Benz to expand again in Alabama and South Carolina

Mercedes-Benz has applied for tax breaks for potential projects at two U.S. plants, including its Tuscaloosa County facility and its electric delivery vans and medium-sized electric luxury transporter plant in South Carolina. Both expansions include new all-electric models. In Alabama that would be the GLC SUV, which is currently only available with a combustion engine.

In 2022, Mercedes began electric vehicle production in Vance, Ala., capping five years of activity and more than $1 billion in investments, which also added an electric battery factory in Bibb County and 1,000 more employees. The German automaker is applying for incentives available under the Inflation Reduction Act (IRA), which has sparked billions in clean energy projects throughout the South.

 

Hyundai Motor Manufacturing Alabama (HMMA) to invest $190 million to upgrade production line in Montgomery, Ala.

The automaker plans to retool and upgrade its manufacturing facility for the fifth-generation Santa Fe.

 

Toyota Boshoku America, Gov. Beshear celebrate announcement of $225 million investment in Hopkinsville, Ky.

The automotive company will bring 157 high-paying jobs to Western Kentucky.

 

Construction continues at Hyundai’s $7.6 billion Metaplant in Savannah, Ga.

The 2,000-worker, 2,906-acre construction site is showing signs of progress with steel frames going up for most of the buildings, with roof and wall work beginning. Hyundai defined Metaplant on the facility’s first groundbreaking anniversary — “transformative, transcending.”

 

Rivian confirms 2024 Georgia factory groundbreaking

Speaking at the company’s new showroom at Ponce City Market in Atlanta, Rivian announced plans to break ground on its $5 billion factory near Rutledge, Ga., early next year. The factory will produce the R2 crossover and is expected to employ 7,500 workers.

 

Daechang Seat Corp. announces $72.5 million manufacturing facility near Hyundai’s Metaplant near Savannah, Ga.

The company makes seat frames, and the new facility will employ 500-plus people at the Savannah Chatham Manufacturing Center, an industrial park along I-16.

 

North Carolina lands EV battery components plant

Epsilon Advanced Materials, an Indian manufacturer of battery materials, will invest $640 million to build a factory in Brunswick County. The company will create 500 new, well-paying jobs.

 

Brunswick expansion will make Georgia home to the U.S.’s largest automotive port

The Port of Brunswick and other port facilities support 561,000 jobs and contribute $59 billion annually to Georgia’s gross domestic product, according to the University of Georgia.

 

PACCAR is expanding operations in Columbus, Miss.

The global automotive technology company is investing $209.4 million in two projects that will create 100 jobs. An industry leader in the design and manufacture of premium trucks, the company is expanding its existing facility by 50,000 square feet to add remanufacturing operations to the site.

 

Hwashin to build Georgia plant to supply Hyundai

The Korean auto parts and frame supplier is investing $176 million into a new plant in Dublin, which will create 460 new jobs. Hwashin has facilities globally, including its first in the U.S. in Alabama.

 

Hyundai Industrial Co., Ltd., to invest $24 million in Coweta County, Ga.

The automotive parts supplier will create 100 new jobs at a new manufacturing facility near Newnan, becoming yet another part of the large network of suppliers for Hyundai and Kia since Hyundai’s Metaplant announcement.

German automaker eyes U.S. assembly plant

According to a report in the Washington Post, Audi is considering building a U.S. factory to produce electric vehicles. In just the past three years, several automakers and battery manufacturers have announced plans to spend billions on new facilities in the Southern Automotive Corridor.

 

Ford and Gov. Lee celebrate historic BlueOval City in West Tennessee

In the spring quarter, Tennessee Governor Bill Lee and Ford Motor Company marked significant progress on construction at the historic BlueOval City complex in West Tennessee. The project is the single largest investment in Tennessee history. In 2021, Ford Motor Company and SK On committed a $5.6 billion investment to build a 3,600-acre mega-campus called BlueOval City at the Megasite of West Tennessee, where the production of Ford’s second generation electric trucks will begin in 2025. The project is expected to create 30,000 jobs in West Tennessee, anchored by Memphis, including auto parts suppliers and other support projects. The construction is expected to create 6,000 jobs.

 

Study projects BlueOvalSK EV battery plant will have $800 million economic impact in Kentucky

A new study conducted by the Kentucky League of Cities (KLC) and Murray State University shows the potential economic impact of the BlueOval SK Battery Park on local governments in Hardin County and the surrounding region. Once at full employment in 2025, the Ford facility is estimated to have a yearly value-added impact of nearly $800 million.

 

Lithium-ion battery recycler opens plant in Georgia

A $50 million lithium-ion battery recycling facility is now open in Covington, a critical piece of Georgia’s growing electric vehicle supply chain. Massachusetts-based Ascend Elements currently employs 100 workers at the facility, which is near Rivian’s planned $5 billion electric vehicle plant in Social Circle, Ga. The battery recycler plans to increase its headcount to 185 by 2024, and called the project the largest of its kind in North America.

 

EVs in Georgia account for the majority of Georgia’s biggest deals

Electric vehicle plants like Rivian and Hyundai in Georgia make up seven of the 10 largest economic development projects as of April. The Hyundai project, worth billions, is one of the largest economic development projects announced in the South.

 

Toyota Boshoku to make $225 million investment in Hopkinsville, Ky.

Toyota Boshoku America Inc. (TBA) will invest more than $225 million to construct a new facility in Hopkinsville and create 157 quality jobs for Kentuckians, according to the Lane Report. The new facility will include a 365,400-square-foot building pad on 49 acres in Christian County. The plant will be the first TBA location globally to be considered a “Smart Plant.” The facility will employ innovative, cutting-edge technologies such as advanced robotics, planning and automation to streamline processes, reduce waste and enhance productivity to maximize efficiency and operations.

 

$1.3 billion investment announced in South Carolina

Charlotte-based Albemarle is investing at least $1.3 billion and creating more than 300 new jobs to construct a new “Mega-Flex” lithium hydroxide processing facility in Chester County, S.C. The facility will support the surging demand for electric vehicles and other energy storage applications that use lithium-ion batteries. Situated on nearly 800 acres near Richburg, Albemarle’s new “Mega-Flex” conversion facility will support the fast-growing global electric vehicle and energy storage markets. The term “Mega-Flex” refers to the facility’s ability to process diverse lithium feedstock, including lithium from recycled batteries. The new facility is expected to annually produce approximately 50,000 metric tons of battery-grade lithium hydroxide from multiple sources, with the potential to reach up to 100,000 metric tons, according to the South Carolina Department of Commerce.

 

Another lithium-Ion battery campus being built in South Carolina

Cirba Solutions, a comprehensive battery management and materials company, announced plans in the spring to build its newest state-of-the-art, flagship operations in Richland County, S.C. The integrated lithium-ion battery materials campus will encompass an initial investment of over $300 million and will create more than 300 new jobs. The company plans to build an approximately 400,000-square-foot, world-class lithium-ion battery recycling and materials campus that will focus on processing end-of-life hybrid and EV batteries and gigafactory scrap to extract critical materials such as nickel, cobalt and lithium.

 

Electric vehicle battery manufacturer expanding in Tennessee

Microvast, a maker of batteries for EVs, is investing $150 million to expand its facility in Clarksville, Tenn. The expansion will double the plant’s capacity. “Houston-based Microvast is one of several automotive companies pouring new investment into Greater Nashville and hitching the largest piece of Tennessee’s manufacturing economy to electric vehicles.” So far, Microvast has committed to close to 290 jobs at its first Clarksville factory and another 600 to 700 at a potential second factory nearby, according to the Nashville Business Journal. Microvast reported 35 percent growth in revenue from 2021 to 2022. Its backlog of orders more than tripled, to $410.5 million.

 

Supplier to Hyundai’s massive Georgia complex to bring new jobs

Korea-based PHA announced it will build a new plant near the Hyundai facility in Chatham County, Ga. The $67 million investment will generate more than 400 new jobs.

 

Tin Thanh Group to locate tire manufacturing facility in rural South Carolina; over 1,000 jobs to be created

Tin Thanh Group Americas, a tire manufacturer, announced plans to establish its first United States operations which will be in Allendale County. The company’s $68 million investment will create 1,031 new jobs. Supplying energy from reusable sources, Tin Thanh Group Americas will provide operations in recycled energy, closed industry-agriculture, recycled waste and tire leasing while serving the environment, energy, high-tech agriculture and technology markets.

 

Auto parts manufacturer to hire more than 119 in Salem, Va.

German auto parts manufacturer STS Group AG will establish its North American headquarters in Salem. The company announced a greenfield project in Wythe County, Va., in 2001, but has chosen to move into an existing facility near Roanoke. The investment of $39 million will create 120 jobs.

 

Ford’s $5.6 billion BlueOval City complex attracting suppliers far and wide in Tennessee

The Tennessee Department of Economic and Community Development reported in the spring quarter that Ford’s suppliers for its electric vehicle facility in Stanton, Tenn., (located just outside of Memphis) are considering sites in more places in the Volunteer State than West Tennessee. Supplier activity is hot on the site of the 11-million-square-foot plant shared by Ford and battery maker SK.

 

Another Hyundai supplier picks Georgia

A steady stream of automotive parts suppliers has announced plans to serve the gigantic Hyundai battery and vehicle plant in Bryan County, Ga. South Korea-based PHA announced in March it will invest $67 million in a new facility near the Hyundai plant. The deal will create over 400 jobs.

 

Alabama automotive sector continues to thrive

Alabama’s four major assembly plants continue to grow. Mazda Toyota is adding jobs in Huntsville. Hyundai (Montgomery) and Mercedes-Benz (Tuscaloosa County) continue to expand their electric vehicle lineups. And Honda plans updates on several models at its plant in Lincoln.

 

Tire manufacturer hiring 125 in Tennessee

Nokian Tyres is expanding its workforce in Dayton, Tenn. The project will generate 125 new jobs.

 

Hyundai assembles first electric vehicle at its Alabama plant

Korean automaker Hyundai rolled out its first electric vehicle at its large plant in Montgomery, Ala. The Genesis Electrified GV70 SUV was the first model to be produced. The first EV comes 10 months after Hyundai announced that it would build the Electrified GV70 SUV and a hybrid version of the Santa Fe at the Montgomery plant. Hyundai invested $300 million and added 200 jobs to install an EV line at the plant.

 

Supplier adds to growth list of Korean parts makers in Georgia

In the spring quarter, Georgia announced Sewon America would invest more than $300 million into a new manufacturing facility in Rincon in Effingham County, Ga. The deal will generate more than 700 jobs.

 

South Carolina leads nation in export of vehicle tires

Gov. Henry McMaster, the South Carolina Department of Commerce (S.C. Commerce) and the South Carolina Ports Authority (SC Ports) announced that the state’s 2022 export sales totaled $31.5 billion, up 6 percent over 2021, according to data from the U.S. Department of Commerce. The state remains the nation’s top exporter of completed passenger motor vehicles and tires.

 

Tuskegee, Ala., captures Korean auto supplier

Samkee Corp., a Tier 1 supplier to Hyundai’s plant in Montgomery, will open a $128 million factory in Tuskegee, its first U.S. operation. The project will create 170 new jobs.

 

Virginia backs out of Ford deal; project goes to Michigan

Ford Motor Co. announced it will build at $3.5 billion electric vehicle battery plant in Michigan. The plant will house about 2,500 workers. Virginia dropped out of the running for the deal in February.

 

Seoyon E-HWA joins list of Hyundai suppliers in Georgia

Gov. Brian Kemp announced that Seoyon E-HWA, a global auto parts supplier that manufactures both interior and exterior components, will create 740 new direct and indirect jobs and invest almost $76 million in a new manufacturing facility in Chatham County, Ga.

Automakers optimistic for 2023 rebound

After the worst year of vehicle sales in more than a decade, automakers in the Southern Automotive Corridor are optimistic that 2023 will be a rebound year. Industry experts believe vehicle sales in the U.S. were near 14 million in 2022, an 8 to 9 percent drop from 2021. Parts and supply chain issues affected many automakers in 2022.

Mazda not yet at “full employment” at Alabama plant

Back in 2018, Mazda and Toyota announced a joint-venture plant in Limestone County, Ala. The plant currently houses 3,700 employees, but the two Japanese automakers are having a tough time reaching the goal of 4,000 workers as a result of thin labor pools and retention issues. Mazda makes it CX-50 crossover model at the plant and Toyota its Corolla Cross model.

Hyundai Mobis plans EV battery module plant in Montgomery, Ala.

In the fall quarter, Gov. Kay Ivey joined executives of Hyundai Mobis, one of the world’s largest auto suppliers, to announce the company’s plans to invest $205 million to open an EV battery module plant in Montgomery that will eventually employ at least 400 people. Once it reaches full production, the 450,000-square-foot facility will be able to supply over 200,000 EV batteries annually to the Hyundai Motor Manufacturing Alabama (HMMA) factory in Montgomery and the Kia Georgia plant in West Point, Ga.

Hyundai and SK On announce $4 billion EV battery deal in Georgia

Gov. Brian P. Kemp announced in December that Hyundai Motor Group and SK On have selected a site in Bartow County, Ga., for a new electric vehicle battery manufacturing facility that will supply Hyundai Motor Group’s plants in the U.S. One of the largest economic development projects in state history, stakeholders estimate it will create more than 3,500 new jobs through approximately $4 billion to $5 billion of investment in Bartow County. Hyundai Motor Group and SK On recently signed a memorandum of understanding regarding the partnership for a new EV battery facility in the U.S., with the details of the partnership still in development.

New supplier to Hyundai’s massive Georgia EV plant

Hyundai Mobis, one of the world’s largest automotive suppliers, plans to invest $926 million in a new facility in Bryan County, Ga. The plant will help supply electric vehicle production at Hyundai’s new multi-billion-dollar, multi-thousand-job complex in Southeast Georgia. The deal will create 1,500 jobs.

Another EV battery maker announces billion-plus investment

FREYR Battery, a developer of clean, next-generation battery cell production capacity, will invest $2.57 billion into Georgia’s sustainable technology ecosystem and create 723 new jobs over the next seven years at a manufacturing facility in Coweta County.

First Georgia Hyundai supplier to build new facility in Georgia

Joon Georgia Inc., an automotive parts manufacturer, will create 630 new jobs and invest $317 million in Bulloch County. Plans for the company’s new manufacturing facility mark the first confirmed supplier for Hyundai Motor Group Metaplant America in Bryan County.

Kentucky’s largest-ever economic development project going up

At the Glendale Megasite on Interstate 65 in Kentucky, Ford and its South Korean partner, SK, are building a pair of manufacturing plants that will produce batteries for Ford and Lincoln electric vehicles. Construction has been going on for quite a while now on the multi-billion-dollar project, yet, the official groundbreaking took place in December. The 2.3-square-mile campus will eventually employ 5,000 workers. 

Vietnamese electric vehicle manufacturer goes public because of new North Carolina assembly plant

VinFast, which is building a $2 billion electric vehicle and battery plant in North Carolina, has filed a registration statement with the U.S. Securities and Exchange Commission, the first formal step toward a public offering this year. The automaker became Vietnam’s first automaker in 2019.

Electric vehicle manufacturer to open facility in Oklahoma City

Following a long line of electric vehicle and battery announcements in the Southern Automotive Corridor (go to SouthernAutoCorridor.com), Canoo announced in the fall it will locate an assembly facility in Oklahoma City. The project is expected to generate 500 jobs and 20,000 units by the end of 2023.

Huge deal in the South Carolina Low Country

Redwood Materials is locating its next Battery Materials Campus, in the heart of the “Battery Belt,” just outside of Charleston, S.C. The facility will be built at Camp Hall in Berkeley County. Redwood will recycle, refine and manufacture anode and cathode components on more than 600 acres, creating more than 1,500 jobs and investing $3.5 billion in the local community. The company combines recycling, refining and remanufacturing to produce and return battery materials to U.S. battery cell manufacturers used in electric vehicles.

Ultium Cells to expand Tennessee facility

Ultium Cells, a joint venture of LG Energy Solution and General Motors, will expand its Spring Hill, Tenn., battery cell manufacturing operations. The project represents a $275 million investment by Ultium Cells, which is in addition to the $2.3 billion investment announced in April 2021, and is expected to create 400 additional jobs. Once the facility is fully operational, Ultium Cells is expected to employ a workforce of 1,700 in Maury County.

Ultium Cells will increase battery cell production by more than 40 percent, from 35 gigawatt-hours to 50 GWh. The Tennessee facility will supply battery cells to General Motors’ Spring Hill assembly plant for production of the Cadillac LYRIQ, the first electric vehicle produced at the plant, and other GM Ultium Platform-based electric vehicles. Production at the 2.8-million-square-foot facility will begin in late 2023.

Tesla’s Austin factory delivers first electric semi-truck

In the winter quarter, Austin-based Tesla delivered its first electric semi-truck to its first customer, PepsiCo. The delivery is the first since Tesla CEO Elon Musk said his company would start making the trucks.

The Southern Auto Corridor’s 10 Largest New and Expanded Manufacturing and Selected Non-Manufacturing Job Announcements

Announcements Made in the Summer 2022 Quarter

Company	Jobs	$Inv	N/E	Location	Description
1. Toyota	1,000	$2,500	N	Randolph Co., N.C.	EV batteries
2. Mercedes-Benz	1,000	N/A	E	Tuscaloosa Co., Ala.	Electric vehicles
3. Ascend Elements	400	$300	N	Hopkinsville, Ky.	EV parts
4. Hankook Tire	397	$612	E	Clarksville, Tenn.	Tires
5. Bosch	350	$200	E	Anderson, S.C.	EV fuel cells
6. Eberspaecher	250	N/A	N	Louisville, Ky.	Auto parts
7. ATC Drivetrain	218	$8	N	Knoxville, Tenn.	Auto powertrains
8. MP Materials	150	N/A	N	Fort Worth, Texas	Rare earth magnets
9. Nippon Denkai	100	$150	N	Augusta, Ga.	EV parts
10. Shinhwa Auto	42	$78	E	Auburn, Ala.	Auto parts

The Southern Auto Corridor’s 10 Largest New and Expanded Manufacturing and Selected Non-Manufacturing Job Announcements

Announcements Made in the Spring 2022 Quarter

Company	Jobs	Investment	N/E	Location	Description
1. Hyundai	8,100	$6,000	N	Savannah, Ga.	Electric vehicles
2. Envision AESC	2,000	$2,000	N	Bowling Green, Ky.	EV batteries
3. Volkswagen	1,000	N/A	E	Chattanooga, Tenn.	Auto assembly
4. Nissan	600	$500	E	Canton, Miss.	Electric vehicles
5. Nucor	500	N/A	E	Mason Co., W.Va.	Automotive steel
6. Schneider Electric	400	$100	N	El Paso, Texas	Auto parts
7. Volvo	360	$41	R	Greensboro, N.C.	Financial services
8. Toyota	220	$222	E	Huntsville, Ala.	Engines
9. Nucor	200	$350	N	Lexington, N.C.	Automotive steel
10. Hyundai	200	$300	E	Montgomery, Ala.	Electric vehicles

The Southern Auto Corridor’s 10 Largest New and Expanded Manufacturing and Selected Non-Manufacturing Job Announcements

Announcements Made in the Winter 2022 Quarter

Company	Jobs	Investment	N/E	Location	Description
1. Vinfast	7,500	$2,000	N	Chatham Co., N.C.	Electric vehicles
2. Carvana	3,500	N/A	E	Atlanta, Ga.	Used vehicles
3. Mazda Toyota	1,200	N/A	E	Huntsville, Ala.	Auto assembly
4. GreenPower Motor	900	N/A	N	Charleston, W.Va.	Electric buses
5. Envirotech	800	N/A	N	Osceola, Ark.	Electric trucks
6. DeLorean Motor	450	N/A	N	San Antonio, Texas	Headquarters
7. Aspen Aerogels	250	$300	N	Bulloch Co., Ga.	EV parts
8. Alkegen	250	N/A	R	Irving, Texas	EV parts
9. Proterra	200	$176	E	Spartanburg, S.C.	Electric buses
10. Arrival	150	$11	E	Charlotte, N.C.	EV parts

By Michael Randle

Out of nowhere, just about every industry in the U.S. faced a chip shortage crisis in recent years, particularly the last five years. We should have known.

Beginning in the early 1990s, many U.S. and foreign-based companies outsourced semiconductor production to China, Taiwan, South Korea and Malaysia. The Japanese were already big chip producers, but back then, it was all about costs and the U.S. and Japan could not compete with China.

That was the case until Asian wages, including those in China and Malaysia, went through the roof. Because of that, in about 2009 the word “reshoring” was invented. The idea was this: U.S. wages had stagnated for years, but that was a good thing to major manufacturers. All of a sudden, a manufacturer could produce goods – in the South, anyway – for about the same costs as in China, factoring in rising wages, shipping costs and others issues surrounding making something halfway around the world for U.S. consumption.

In the mid-2000s, after manufacturers of every sector known, left the U.S. in a herd mentality to Asia and Mexico, major corporations were all for free trade. They could make stuff and pay $2-an-hour. It might not have been well-made stuff, but it was made and it was bought to be assembled right here in the USA.

It was about then that corporate minds began to wonder. Why are we producing things over there when we can make them here for about the same costs? At the center of the issue was the semiconductor industry and literally giving China a free pass on intellectual knowledge developed here in the U.S. Computer chips made in China, some as old as 10 years, were being used by American industry and amazingly, still are. Something had to change and it did.

Several multi-billion dollar projects have been announced in Texas and North Carolina in the last year are undeniably being made to counter the Asian issue and the availability of chips for every industry that uses them. Yet, when the automotive industry noticed the problem with a shortage crisis, which seemed to tip the scale.

Two big deals announced in Texas last fall will eventually come to the economy’s rescue. Texas Instruments announced it plans to invest up to $30 billion to build as many as four new semiconductor fabrication plants in Sherman, Texas. TI said it will begin construction in 2022 on the first two plants producing its 300-millimeter wafers used in everything from cars and trucks to industrial machinery. The plants could house up to 3,000 workers when complete. The other big semiconductor facility is by South Korea chip manufacturer Samsung Electronics. It will build a second chip facility in the Austin area in Taylor, Texas. The plants will house thousands of workers.

The rumors

Micron Technology is the latest high-tech giant to consider the Austin area for a multibillion-dollar manufacturing operation. According to the Austin American Statesman, the company was checking out sites near Lockhart, Texas, according to its applications for tax breaks filed with the state comptroller’s office. The investment would total at least $20 billion, but much higher from 2030 to 2040. However, Idaho-based Micron chose a site near Syracuse, N.Y. for its latest venture.

On a much bigger scale, South Korea-based Samsung, which already operates a computer chip plant in Austin and currently building another nearby in Taylor, Texas, is considering 11 new fabrication plants in Central Texas. The projects could top out at $200 billion. The potential plans are described in 11 applications Samsung has filed with the Taylor and Manor school districts seeking tax breaks for building the facilities.

North Carolina has also gotten in to the semiconductor reshoring “herd mentality” act. North Carolina-based Wolfspeed is building a $5 billion semiconductor manufacturing plant, it was announced in September. The company is a world leader in silicon carbide semiconductor manufacturing. The $5 billion being invested is the largest capital investment for an economic development project in North Carolina’s history. The project, located on a site in Siler City, N.C., near the Research Triangle, will create 1,800 new jobs.

Back in the 1990s, every state in the South clamored for semiconductor plants that represent billions in investment and house thousands of good-paying jobs. Since few media properties had websites back then, many of Southern Business & Development’s ads purchased in the print product were about how well-suited this place or that place was for semiconductor manufacturing. I think during that, the South may have landed three chip facilities.

But, by then, it was too late. We had already started the massive offshore massacre that devastated the middle-class in this country. It was the “giant sucking sound,” that Ross Perot phrased during his 1992 US presidential campaign; referring to the sound of U.S. jobs heading south for Mexico should the free-trade agreement go into effect. Mexico got our share of jobs, but China got the lion’s share.

Maybe now, too late has become very early in the reshoring of manufacturing to the U.S. It is just a matter of laws set forth by our lawmakers and how competitive we remain.