The automotive industry in Northern Kentucky has a long tradition of successful operations. It has a strong corporate base, a large talent pool, numerous distribution channels, and close customer proximity. It also has a history of innovation.

  • More than 96% of automotive production in the U.S. and Canada is within a 1-day drive of Northern Kentucky.
  • The centralized location allows access to any member of the well-rounded Kentucky automotive manufacturing, development, and research companies.
  • The region has over 20 colleges and universities nearby which provide research opportunities and a skilled workforce.

It is for all of these reasons, and more, that automotive companies in Northern Kentucky are now moving to the forefront of the electric vehicle industry. An industry that is projected to grow in the US alone by nearly 20% through 2030.

In this article, we’ll look at the emerging electric vehicle sector in Kentucky. This includes the current state of the industry in the region, leading players, and what the future may hold for the sector.  

The Automotive Industry in Northern Kentucky

BE NKY Growth Partnership estimates that there are more than 10,000 people employed in Northern Kentucky’s automotive industry. They are working in:

  • Manufacturing
  • R&D 
  • Assembly
  • Lubricants
  • Chemical formulations
  • Automation system development

The nearly fifty companies in these categories generate millions of dollars for the region each year. And, they have invested even more in the state overall. Since 2020, the automotive industry has invested $12 billion in Kentucky.

Traditional cars and trucks (and their associated parts and supplies) will continue to be a major output of the region. However, there has also been a surge in the growth of electric vehicle or EV manufacturing.

The Northern Kentucky Advantage

Northern Kentucky has a history of producing exceptional results for suppliers and manufacturers in the automotive industry. This success is now being experienced in the development of electric vehicles. There are a number of reasons why the EV supply chain in Kentucky is so strong.

A strategic location

Northern Kentucky sits in the center of what is known as “Auto Alley.” This highlights the region’s ability to move (and receive) EV parts and supplies effectively. The region is in many ways a central hub for maintaining the electric vehicle supply chain.

  • Kentucky is currently within a day’s drive of more than 50 percent of the population of the United States.
  • The electric vehicle sector of Kentucky is within 600 miles of over 60 automotive OEMs. 

The knowledge to succeed

Another key to growing the EV industry in Northern Kentucky is the number of colleges and universities in the area. Some of the schools provide general knowledge to apply to the EV industry. Others, such as the Gateway Community & Technical College, have developed specific courses and training in the ever-expanding automotive technology field. 

Business incentives

TeamKentucky reports that the state is at the top of the country in terms of per capita automotive production. One of the reasons for this is the expansive selection of business incentives available. In Northern Kentucky, new and established businesses can access incentive programs for:

  • Establishing employee training programs
  • Expanding manufacturing capabilities
  • Making investments in the business
  • Retooling
  • Relocation

Cost advantages 

There are a number of cost advantages for automotive companies in Kentucky. Some of these are supplied through government programs. Others come from efficiencies that can be found when doing business in an area that is focused on your industry.

An Area of Automotive Innovation

Northern Kentucky is home to over 40 automotive companies. These companies are not just producing materials and solutions for the current state of the automotive industry, they are also looking at what’s next. That’s why many are active in electric vehicle manufacturing in Kentucky. 

Among the companies currently working in the electric vehicle sector in Kentucky are:

  • Mubea Inc. is developing innovative, lightweight products for use in the automotive industry. Many of these products are designed to meet the specific requirements and needs of electric vehicles.
  • Celanese is developing specialty polymers that can meet the unique engineering challenges found in electric vehicles.
  • Mazak recently opened a new SYNCREX assembly plant which brings dozens of new jobs to the area. This plant will specifically manufacture high-precision, swiss-style machine tools. These are just some of the many specialized tools that the company provides for EV parts manufacturing.

Electric vehicle innovations are happening not just in Northern Kentucky, but across the state. 

  • Motors
  • Structural components
  • Nanomaterials
  • Batteries
  • Air springs

are some of the parts used in electric vehicles that are being built in Northern Kentucky and the surrounding region. This type of broad EV parts manufacturing in Northern Kentucky is what makes this region such an important piece of the EV supply chain.

The Future of the Automotive Industry in Northern Kentucky

Area Development magazine said it perfectly: 

“Kentucky is at the center of an automotive revolution.” 

The cornerstone of that revolution may be the electric vehicle sector in Kentucky. While it will not immediately replace the traditional automotive industry in Northern Kentucky; EV parts, manufacturing, and R&D opportunities can bring the region enormous growth.

The future is electric

Electric vehicle manufacturing in Kentucky is poised to grow across the remainder of the decade. And beyond.

  • Toyota Motor, the largest auto manufacturer in the world, is investing $1.3 billion to build a manufacturing facility in Kentucky. All-electric SUVs will be built at this facility.
  • Ford is in the process of building two large-scale plants in the state. The two plants will be focused on building batteries for electric vehicles. Together they will create 5,000 new jobs.
  • Piston Automotive is making a nearly $25 million investment in electric vehicles in the state which will result in the creation of nearly 70 jobs.

Kentucky residents won’t just be building EVs, they’ll be driving them too. The state is currently developing 42 fast charging stations to support the consumer growth of the EV industry.

Government support and partnerships

Local and state governments are working to create an attractive business environment. This can benefit new businesses in the region and those that already call Northern Kentucky home.

Some of the government-led opportunities for building success include:

  • Opportunity Zone Investment Programs
  • Structured tax credits
  • Business expansion programs
  • Tax credits 
  • Incentives for business growth and employee reskilling
  • Industrial Revenue Bonds (IRB)

Electric Vehicle Manufacturing in Kentucky

There is a reason that electric vehicle manufacturers have invested over $11 billion in EV-related projects in the state. It’s because Kentucky is uniquely situated to help the industry grow successfully.

Northern Kentucky in particular is well situated to be a lynchpin in the EV sector.

  • It’s easily connected (centrally located on I-75 with rail, water, and air service)
  • The central location allows it to work alongside OEM facilities in the northern AND southern halves of the country.
  • It has a strong employee bench (there is a 1.5 million-person labor shed).
  • There is a deep history of automotive industry success with nearly 50 companies producing parts and vehicles.
  • A strong innovative spirit runs through the region with its 20+ colleges and universities.

As the electric vehicle sector in Kentucky continues to grow, BE NKY Growth Partnership will be there with guidance and support. The organization is dedicated to making sure Kentucky-based companies have the resources, tools, and infrastructure they need. Find out how they can help your EV plans today.