Why is Kentucky Such a Key Location for EV Investment?

03/07/2023

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If you’re tuned in to Kentucky economic development news, you’ll notice EV and related manufacturing announcements have dominated in the last year or so with over $17 billion of EV-related projects within 200 miles of South Western Kentucky alone.

The Governor of Kentucky has even deemed the Commonwealth not only the “Horse Capitol of the World” and the “Bourbon Capitol of the World”, but now the “EV Capitol of the World” thanks to historic investment announcements by Ford’s Blue Oval announcement and locally in South Western Kentucky, Ascend Elements’ $1 billion investment, among several others. But why Kentucky, and why right now?

  1. Kentucky has a strong workforce. Kentucky has the opportunity to fill manufacturing job openings with a segment of the workforce that has not yet been activated, as well as the influx of talent in places like South Western Kentucky. In the SWK, 400-600 people monthly have the opportunity to join the workforce as they separate from their service at Fort Campbell. Manufacturers are realizing they can tap in to this skilled workforce, ensuring the effective and efficient production of their vehicles and components.
  2. Kentucky is pro-business. With Kentucky’s commitment to eliminate the state income tax, right to work, tax incentives, local benefits, access to grants and loans – the opportunities for a business to grow in the state of Kentucky are plentiful.
  3. Kentucky is a key strategic location. When distribution makes a huge difference in the bottom line, Kentucky makes all the sense in the world – quite literally. With the SWK within a days’ drive of 86% of the U.S. population, we’re seeing that rank highly as companies consider our location. Market proximity and connectivity along with that talent pipeline are all in the “pro’s” column for Kentucky.
  4. The more, the merrier. When announcement after announcement come into an already heavily automotive state, it makes it easier for others to make the move. Reducing transit time on components and delivery times through distribution make Kentucky more and more attractive to potential manufacturers and OEMs.

In addition to automotive, agriculture, aerospace and defense, and distribution, at the South Western Kentucky Economic Development Council we’re seeing an influx of inquiries from those in the EV and automotive spaces. Have questions about how your company may fit in the mix in Kentucky? Reach out.