With a strong foundation of legacy automotive companies, a skilled workforce experienced in advanced manufacturing, and a network of world class research and technical educational institutions, South Carolina is a natural location for both new and existing companies to expand and establish electric vehicle (EV) and battery operations. In the last decade, the state has seen historic levels of investment across the EV and battery manufacturing subsectors, due in part to South Carolina’s strong advantages. The state’s central position along the growing “battery belt”—which runs from Michigan to the Southeast—of battery and EV manufacturing projects positions it well logistically and strategically for further investment. Through this growth sector, the state has an opportunity to continue leading as a producer of vehicles while capitalizing on opportunities across the battery supply chain—from battery recycling and material production to cell manufacturing and final assembly. This brief provides insights from a roundtable hosted in Columbia, South Carolina, in November 2024 that explored how South Carolina can build on its strong manufacturing base through the opportunities offered by the battery and EV supply chain.

Policy Recommendations

Driving Private Sector Investment and Domestic Manufacturing

Recommendation: To ensure business confidence in announced investments and the long term stability necessary to grow American manufacturing in the battery and EV industries, Congress should maintain clean energy and clean vehicle tax credits, specifically 45X, 30D, and 45W.

Increasing Investment Certainty in the Critical Mineral and Material Market

Recommendation: To derisk new critical mineral projects, Congress should appropriate funds for the Department of Energy to investigate which mechanisms best support private offtake agreements for new projects. The mechanisms should be determined in consultation with industry stakeholders and include options such as contracts-for-difference, and offtake backstops.

Creating Circularity in the Battery Industry

Recommendation: To increase the ability of dismantlers and recyclers to safely remove, handle, and recycle batteries, Congress should direct and appropriate funds for EPA to convene a coalition of industry stakeholders to develop a roadmap for best practices on battery design for efficient removal from a vehicle by dismantlers and recovery of battery materials by recyclers.

Improving Community Engagement in Project Development

Recommendation: To help companies and communities engage earlier and more comprehensively in the leadup to large project development, the South Carolina Department of Commerce’s Coordinating Council for Economic Development should provide a statewide fund to establish a community benefits agreement council that can be included in the negotiation process with companies looking to site projects in South Carolina.

Developing the Workforce for South Carolina’s Advanced Energy Future

Recommendation: To increase the enrollment of students into technical college programs in fields of need as identified by supply gap analysis conducted by the state’s Department of Employment and Workforce, the South Carolina Legislature should appropriate funds to expand the SC WINS scholarship program to cover the full cost of tuition for positions of high need.

Recommendation: To ensure that recent graduates have immediately applicable and transferable skills in high demand employment contexts, the SC technical college system should foster partnerships between individual local colleges and nearby companies to develop curriculums that will train workers for available jobs and incorporate statewide skill needs analysis into their curriculum.

Conclusion

The growing market share of electrified options within the automobile industry offers both a challenge to incumbent manufacturers to diversify their production and an opportunity for South Carolina to position itself to enhance growth and resilience in its economy. C2ES’s roundtable in Columbia, South Carolina, provided an opportunity to bring together a wide-ranging group of battery and EV industry stakeholders to discuss how the state can strengthen those aspects of the supply chain that might pose a risk to the long-term resilience of the industry. In-depth discussions among stakeholders on the topics of critical mineral supply chains, battery circularity and recycling, community engagement, and workforce development provided the foundation for a set of policy recommendations aimed at bolstering these aspects of South Carolina’s battery and EV industries. In the near term, ensuring announced projects begin production is key to realizing the economic potential of the industry. State and federal policymakers should work to preserve the incentives that are powering the growth of these industries in the state, ensuring that businesses have the policy certainty they need to bring projects, jobs, and economic development to both South Carolina and the nation.