Written by: Gracie Criger
Gracie is a student at The University of Cincinnati studying Real Estate. She is currently interning with Colliers | Columbus on the research team. Keep reading for an overview on how the rise of electronic vehicles impacts the industrial market.
From the year 2016 to 2021, the rise of electric vehicles increased by 419%. The positive impact this has on the industrial market is only beginning. On average, the amount of manufacturing sites in the US for EV is rising 10% each year since the year of 2018. As of January 2023, there are 237 various manufacturing sites in the US. with over a dozen automakers announcing they will have all fully electric cars ranging from years 2025 to 2040.
Experts predict that half of the vehicles on the road will be electric, plug-in hybrid or fuel by cell by 2030. With the demand of space being leveled out since COVID-19, the predicted numbers show that the need for manufacturing industrial sites will increase again. Announced last year but finalized on Wednesday, March 22nd, was a $1.3 billion lithium processing plant being built in South Carolina. Another $323 million plant nearby will make lithium-ion batteries from recycled scrap material.
When developing a manufacturing site for EV vehicles, large sites are needed to be built and developed in a specific way. Not only are battery sites being created but automakers are having to build expansions or new factories for their EV lines; BMW and Volvo announced expansion facilities. With foreign car manufactures wanting to invest in EV facilities in the US, it is a major growth opportunity for CRE investors. Major automakers are not only wanting to expand and grow facilities, but they want to stay near their already existing facilities for supply chain purposes.
Analyzing this timing with the increased production in chips produced from US Intel hubs, this could all escalate quickly. The Midwest is a region that is expected to have the most growth and new opportunities. Aspects like the availability of workers, proximity for transportation and local and state governments come into consideration when deciding locations. Looking at the positive aspects Columbus has to offer; the future of EV manufacturing sites could make their way here soon.