In conversations across the Southeast United States this year, the Center for Climate and Energy Solutions convened over 150 energy leaders to discuss one of the hottest topics around the American energy economy: critical materials and battery manufacturing. In every conversation, policymakers, companies and other stakeholders highlighted the work to secure a domestic critical materials supply through industrial development and innovation and create new American jobs.  

Hosted by the C2ES Regional Clean Economies Initiative, this cross-sectoral group of energy leaders offered achievable policy solutions to accelerate the development of the critical battery materials supply chain and deliver local economic benefits to the communities of the Southeast. 

Although near-term projections for the growth of the U.S. electric vehicle market have cooled slightly, global battery demand is rising at a rapid pace. Many American companies and communities across the emerging “battery belt” possess the capabilities to supply the key materials and components that go into these products, creating massive opportunity to capture the economic benefits of building out this supply chain domestically. 

Through C2ES roundtable convenings in Tennessee, Alabama, North Carolina, and Georgia, we gathered expertise from leaders of communities, workers, economic developers, local businesses, academic experts, state policymakers, entrepreneurs and more. Each echoed that the battery industry brings tremendous tangible job creation and investment opportunities to their region. All agreed that realizing this opportunity requires regional cooperation and intentional, impactful, and intelligent policy solutions at all levels of government. 

• In Tennessee, we heard from startups and Fortune 500 companies alike about the challenges they face in a rapidly shifting policy environment, and the importance of a stable incentive and regulatory structure that enables predictable investment decisions. 

• In Alabama, we learned about the importance of an integrated economic development and policy strategy that focuses on industry-driven research and development, prioritizes intentional workforce development, and leans into the state’s competitive advantage within the broader regional value chain. 

• In North Carolina, we explored the many different shapes and sizes of companies and research efforts in this industry that can span raw materials extraction to final battery assembly, and talked about the importance of collaboration among companies, policymakers, and leaders across state lines. 

• Finally, in Georgia, we learned about how the state’s proactive economic development strategy to land some of the largest electric vehicle and battery factories in the region helped solidify Georgia as an anchor for the many suppliers and innovative technology developers in the region.

Though each of these conversations brought their own unique local opportunities and challenges, we heard a common refrain from the more than 150 leaders brought together: with the right combination of policy support and private sector investment, the Southeast United States is ready and willing to be the center of the global battery industry.  

What would that support look like? Our participants recommended financial incentives for domestic production of critical battery materials, paired with demand-side support to promote the consumption of American made products. They talked about stronger coordination and acceleration of cutting-edge research and development efforts, with a focus on integrating industry needs and bridging the gap from pilot projects to commercialization. They highlighted the importance of proactive workforce development that brings current and future workers into the emerging battery industry while prioritizing transferrable skills and pathways to long-term careers in an advanced and rapidly evolving sector. They recommended smart standards and guidelines for building battery manufacturing facilities and battery storage installations that prioritize safety and remain flexible to the unique needs of the communities that host them. 

Under the Regional Clean Economies Initiative in 2025, we were able to bring stakeholders new and old, big and small together to land on shared principles and offer smart policy solutions for the Southeast. In 2026, we’re looking forward to building these big ideas into actionable recommendations through a regional policy roadmap. C2ES will reconvene our network of leaders and advocates at a regional summit in April 2026 to finalize this roadmap and work towards domestic energy solutions needed for a thriving, growing economy.