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

The transition to electric vehicles in the U.S. is expected to significantly disrupt auto manufacturing jobs, particularly those tied to internal combustion engine components. While battery manufacturing and software-related roles are poised for growth, the shift requires a transition from mechanical to electrochemical production processes, necessitating new digital and chemical skills. The document also highlights risks to job quality, noting a trend of EV investment in non-union Southern states and the impact of AI and vertical integration on the supply chain.

• Workers focused on gasoline engines and engine parts face the highest risk of displacement, with approximately 58,000 workers in this segment likely to experience severe impacts. A majority (57%) of these workers are concentrated in Michigan, Ohio, Indiana, Tennessee, and Kentucky.
• The EV transition is shifting production from mechanical to electrochemical processes, creating demand for specialized skills in chemical engineering, materials science, battery chemistry, and battery management software. There is also an increased need for digital skills to manage human-machine interfaces and data analysis.
• Employment in battery manufacturing and related electrical equipment is projected to grow by 17% between 2021 and 2031. Current estimates suggest 13,400 workers are specifically involved in vehicle-related battery manufacturing.
• Artificial intelligence is being integrated into the automotive value chain to streamline R&D, reduce design time, and predict battery maintenance and lifespan, which will increase demand for workers skilled in machine learning and data analysis.
• Automakers are increasingly adopting vertical integration—sourcing raw materials and building batteries and software in-house—to gain supply chain control, a trend exemplified by Tesla that may reduce business for traditional automotive suppliers.
• There are significant concerns regarding job quality and union power, as approximately 50% ($85.6 billion) of announced private EV investments are located in 'right-to-work' Southern states (Georgia, Tennessee, South Carolina, North Carolina, and Kentucky), where collective bargaining is more difficult.
• Recent labor agreements between the UAW and the 'Big Three' (GM, Ford, and Stellantis) include a 25% wage increase over 4.5 years and provisions for transitioning at-risk powertrain workers to EV positions while maintaining their 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} }