Navigating the EV Transition: 4 Emerging Impacts on Auto Manufacturing Jobs

This briefing by the World Resources Institute examines the impact of the transition to electric vehicles (EVs) on the U.S. auto manufacturing workforce. It identifies high-risk job categories, emerging skill requirements, the influence of AI and vertical integration, and the challenges regarding job quality and unionization in the 'Battery Belt' and Southern states.

• The transition to EVs creates significant displacement risks for workers in specific internal combustion engine (ICE) components. Approximately 58,000 workers focused on gasoline engines and engine parts manufacturing are at high risk, with 57% of these workers located in Kentucky, Indiana, Ohio, Michigan, and Tennessee.
• While some roles face disruption, other manufacturing segments are considered low or no risk because their processes are agnostic to the vehicle's power source. These include motor vehicle body manufacturing, seating and interior trim, and steering and suspension components.
• The EV transition is driving growth in battery manufacturing and related electrical equipment, with the BLS projecting a 17% employment increase in these industries between 2021 and 2031. Current estimates suggest 13,400 workers are specifically involved in vehicle-related battery manufacturing.
• The shift from mechanical to electrochemical production requires new specialized skills. High-demand gaps include chemical engineering, materials science, battery chemistry, and competency with battery management software, alongside a need for skills in safe chemical handling and complex problem solving.
• Artificial Intelligence and vertical integration are altering the workforce landscape. AI is being used for R&D, identifying manufacturing flaws, and predicting battery lifespan, while vertical integration—exemplified by Tesla's direct sourcing and in-house battery production—reduces reliance on traditional external suppliers.
• There is a geographic shift in investment toward 'right-to-work' Southern states, which may impact job quality and union power. Approximately 50% ($85.6 billion) of announced private EV investments are concentrated in Georgia, North Carolina, South Carolina, Tennessee, and Kentucky.
• Recent labor agreements between the UAW and the 'Big Three' (GM, Ford, and Stellantis) aim to protect workers during the transition. These contracts include a 25% wage increase over 4.5 years and provisions for transitioning at-risk powertrain workers to EV positions at existing wage and benefit rates.

APA

World Resources Institute (2024). Navigating the EV Transition: 4 Emerging Impacts on Auto Manufacturing Jobs. https://www.wri.org/insights/ev-transition-auto-manufacturing-jobs

Chicago

World Resources Institute. Navigating the EV Transition: 4 Emerging Impacts on Auto Manufacturing Jobs. 2024. https://www.wri.org/insights/ev-transition-auto-manufacturing-jobs.

Wikipedia

{{cite report |author=World Resources Institute |title=Navigating the EV Transition: 4 Emerging Impacts on Auto Manufacturing Jobs |date=13 June 2024 |url=https://www.wri.org/insights/ev-transition-auto-manufacturing-jobs |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2024navigating, author = {{World Resources Institute}}, title = {{Navigating the EV Transition: 4 Emerging Impacts on Auto Manufacturing Jobs}}, institution = {World Resources Institute}, year = {2024}, month = jun, url = {https://www.wri.org/insights/ev-transition-auto-manufacturing-jobs}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }