Abstract:

Transportation electrification, and electric vehicles (EVs), are critical to a net-zero emissions economy. Consumer demand for EVs is growing exponentially, and companies are racing to meet it. Michigan is a leading producer of internal combustion engine (ICE) vehicles and the shift to EVs will significantly impact workers and communities. With the right policies in place Michigan can take advantage of an expanded automotive value chain and remain an industry leader, attract and retain good jobs, and ensure that Michiganders reap the climate, health and economic benefits of the transition. Some of the key findings include:  Michigan’s economy stands to benefit tremendously from the EV transition if it proactively strengthens its position in EV production and deployment. Supportive policies enabling Michigan to increase its market share of EV assembly and battery production, along with increasing EV adoption could lead to tens of thousands of additional jobs, including 56,000 additional jobs in auto manufacturing in 2030. Since EVs are cheaper to own and operate, Michigan car owners could save $40 billion cumulatively by 2040 on vehicle purchases, maintenance and gasoline. When the savings are re-spent it could lead to 27,000 additional jobs in Michigan’s economy.