As Automakers Shift to Electric Vehicles, Union Organizers Target the South

Automakers are investing in new electric vehicle factories and production lines in factories around the Southeast, even as the United Auto Workers, under the leadership of its president, Shawn Fain, is pushing to unionize those southern factories. 

Tennessee reporter Katie Myers has been covering the story of how automakers are getting into EVs — and about how organized labor is trying to get into the South

Inside Appalachia host Mason Adams reached out to learn more. 

This interview has been edited for clarity.

Adams: So, we’re talking because of this buildout of electric vehicle factories across the southeast. A number of companies are leveraging federal funding to invest in new plants in Kentucky, Tennessee, North Carolina, South Carolina and Georgia. It’s even been called the “battery belt.” What’s going on here?

Myers: The Inflation Reduction Act made nearly $100 billion available for the domestic electric vehicle supply chain. $15 billion of that is to help existing factories transition. It’s a huge pot of money that private companies are obviously really excited about. Meanwhile, the auto industry has been trending towards the Southeast, away from its traditional home in the Midwest. A lot of this has to do with the generally lower wages, labor protections and environmental regulations that can be found in many states in the Southeast, due to political forces there. Particularly, foreign automakers have been moving towards the U.S. Southeast, which is kind of funny. It’s almost like countries like Germany with strong unions [are] outsourcing cheaper labor to us, and a lot of those are electric vehicle manufacturers.

Adams: All these new factories and investment in manufacturing comes at a time when the United Auto Workers is making a big push. First, last year, the UAW launched a strike against the big three, Ford, General Motors and Stellantis. And now there’s been a push to unionize factories in Appalachia and the South, in states that haven’t traditionally been friendly to organized labor. How is that labor push going?

Myers: First off, I think it’s important to say the UAW strike was a mark of a change in strategy and direction. If you talk to people who were higher up in the union, or who were longtime workers, there was sort of a frustration for a long time around a perceived stagnancy in the union strategy — knowing that the auto industry was trickling out of the Midwest towards the Southeast, and struggles with democracy within the union, decisions that weren’t being made with the consent consultation of workers that belong to the union.

Shawn Fain, for a lot of folks, represented a change in strategy — real attentiveness towards trying to think about the electric vehicle transition, thinking about where geographically the union needed to grow. This win is a huge morale boost, and that does a lot for organizing. Workers see you’re winning, and they’re like, ‘Oh, my personal risk that I’m taking in joining this union or in going on strike is less now because more people are with me. This union has won and can win.’ That’s all to say that the UAW really struggled to organize in the South for a long time. Starting with a big loss at a Nissan plant in Smyrna, Tennessee, which was the big first foothold of the auto industry in the South. Now that Volkswagen has been located in Chattanooga for a while, they tried to organize Volkswagen a couple of times, [and] lost every time up until this year because there were strong anti-union campaigns. There was a strong collaborative effort by legislators in Tennessee to trash talk the campaigns [and] crush them. Workers were scared. Many of them didn’t have union families, people that the union paid for their dad’s pension or whatever. In the South, there’s not that same kind of legacy unionism [that there is in the Midwest]. So, it can be hard to convince workers it’s worth it. But this time, after two tries, the UAW won their campaign in Chattanooga, and that was a huge deal. It’s the first foreign automaker, certainly the first foreign automaker in the Southeast, and it’s an EV parts manufacturer. So, it hits a lot of points that are really big in the future of the UAW and the future of electric vehicles. It’s a long game that Shawn Fain is playing here, because it’s not easy to organize in the South, and they lost an election after that. They lost the Mercedes-Benz election in Vance, Alabama, because those same tactics were employed. That hasn’t really slowed the UAW down. Shawn Fain said, “We know this takes a few tries, we’re going to come back.” And they actually won another. They won in Spring Hill, Tennessee, which is once again EVs. Organizing the South and organizing the EV [plants] are the future of the United Auto Workers. The Biden administration is pushing EVs to be two-thirds of U.S. car sales by 2050. Knowing that industry is moving to the South in this way, if UAW wants to survive and continue to have bargaining power in the auto industry, this is where they have to be. 

Adams: I understand the Spring Hill unionization was done with the assent of General Motors and LG, the battery company there. Are companies starting to come around on that? Or is that wishful thinking?

Myers: I think it’s never about companies suddenly opening their hearts. I think that once they understand that the union is a powerful enough force that they have to reckon with it, they can’t just ignore it and do a few anti-union videos for their workers and expect things to be easy. Then, then they know that they have to deal with the reality of that.

Adams: Even after the vote at the Alabama plant failed, UAW has continued to try to organize and has success in Spring Hill. What’s the outlook on the broader future for this push?

Myers: It seems like UAW is not going to stop. Every time Shawn Fain gets in front of the mic, he’s like, “We’re organizing the South. We’re going back to Alabama. We’re going back to Tennessee. We’re going to Georgia.” That is clearly their strategy. They’re going to keep pushing and putting energy and resources into organizers in the South, which historically, not all unions have been great at. They sort of give up the South and say, “Well, you can’t win there, it’s not worth putting your resources into.” And so this is a big turn that I wonder if other unions will see and emulate. I think that they’re just recognizing that this is a fight for what’s called “just transition” that we in Appalachia know a lot about, but under a different industry. It’s this recognition that energy transition is happening legislatively and politically. It’s happening all over the world. It might be happening more slowly than climate scientists would want. Without workers involved in it, it just becomes more of the same extractive relationships to land and people, more dangerous jobs. It also becomes a PR problem for climate advocates, because when workers in fossil fuel industries have high-paying jobs that were hard won with — in some cases — the literal blood of workers. and then all of a sudden, they’re asked to go transition into renewable energy, EVs, whatever: “Sorry, the jobs are kind of contract-y and not very well protected, and like a lithium battery might blow up on you.” You can see why workers wouldn’t be enthused about that. I think UAW and other building trades unions are setting precedents that [are] a really important part of the energy transition question. Obviously it will not happen without people doing the work to make it happen. The unions themselves are setting precedents that they’ll benefit from in the future, because they will continue to have membership. There’s also a philosophical question of, “What are we really doing here? What kind of world are we building?” Climate solutions where decarbonization is reinforcing existing inequalities, causing new pollution problems with less of a safety net for workers. [You ask,] “What is it for? What is it all for?”

Katie Myers covers climate stories for Blue Ridge Public Radio and the online magazine Grist.

Sparkz CEO Bullish On Batteries And Building Them Here

Curtis Tate spoke with the company’s CEO, Sanjiv Malhotra, about those batteries and what made West Virginia a good fit.

With millions of dollars in federal support, Sparkz will soon begin building lithium batteries for energy storage and electric vehicles at a shuttered glass factory in Bridgeport. 

Curtis Tate spoke with the company’s CEO, Sanjiv Malhotra, about those batteries and what made West Virginia a good fit.

This interview has been edited for length and clarity.

Tate: Describe the chemistry of the lithium batteries you’ll build. What are the advantages over nickel and cobalt?

Malhotra: So the other chemistry within lithium ion batteries is lithium iron phosphate, or in short, it’s called LFP, and that is the chemistry that Sparkz is focused on. It’s very stable, very safe. Much. Safer than (Nickel Manganese Cobalt) and much lower cost than NMC. So this is much lower cost, almost about 40 percent lower in cost, and the life of the battery itself is about three to four times that of the NMC. LFP is about 5,000 cycles, whereas NMC is about 1,500 cycles. So all these advantages, you know, make LFP very attractive. The only challenge LFP has compared to NMC is the energy density, but we are addressing that by being able to provide ultra-fast charging. LFP, that’s our proprietary technology. That means ultra-fast charging means we can charge from zero to 100 percent in 15 to 20 minutes.

This is the catalyst to make the (electric vehicle) market transition from the early adopter market, which was crazy after energy density or after range, because range and energy density are a function of each other. But as you transition to the mass market, it’s not so much about range as it is about cost and charging time. Not everyone has access to chargers. So if you’re going to a public charging station, the faster you charge, then others can charge. 

Tate: Why West Virginia?

Malhotra: Affordability of utilities, both power and water, and availability of land and accessibility. West Virginia essentially is accessible by Tennessee, the area where a lot of the electric vehicle manufacturers are located or are locating. Again, the same with Michigan, the same with Ohio. The most important, Curtis, is that the workforce is a very well trained workforce in safety, and safety plays a major role in battery manufacturing, because if the safety is compromised, you’re compromising the output of the battery, and that can be fairly hazardous. West Virginia, or essentially the coal sector, provides a lot of very well trained workforce. And two things, one is safety, the safety discipline, and second is process oriented. And those are the two key things when we look at manufacturing, this is you’re essentially producing a chemical. And this workforce is heavily trained, the workforce in West Virginia to produce chemicals. So that’s why West Virginia.

Tate: Will displaced mine and power plant workers be hired for these positions?

Malhotra: Yes, because you know it, I know it, Curtis, that the coal sector has, over the years, over the last couple of decades, diminished immensely in production, and that has resulted in several hundred, maybe thousands, of mine workers being displaced. So our intent is to bring folks from there. But there are others also, l not too far from where we are, in Morgantown, there is the (Mylan) pharmaceutical plant, which shut down. Shutting down that factory also resulted in (job losses for) very well trained workers, again, workers trained in the safety discipline and process. Our pharmaceutical industry is again a very similar industry to ours. So we will have a pick of the best from the coal community, as well as from Mylan.

Tate: There’s an election coming up. Are you concerned that a change in the White House could curb some of the clean energy investments that have helped you stand up your plant?

Malhotra: What I have heard from basically both the candidates is the same that this shall continue. Batteries are not just needed for electric vehicles. Batteries are needed for energy storage. The growth in the data center market is so significant I can’t even put a number to it, and there’s a huge delta in what our grid can supply for the data center market, especially with the growth in AI. If you look at Northern Virginia, that’s where the data center belt is happening, and data centers are happening in West Virginia as well. 

So with utilities like Dominion and few others just racing ahead with basically locking up energy storage or batteries for the next five, 10, 15 years. So there’s a huge demand that we cannot even fathom at this point for energy storage. And if we lose this opportunity to manufacture and manufacture across the value chain, not just the complete battery, but across the value chain, the material for lithium batteries, the cells and the battery pack. We need to have that manufacturing set up in the United States in the next five, six, seven years, because if we miss the train, I think we are going to be losing out on whether it is electric mobility, whether it is renewables, whether it is the need for satisfying the power that data as we grow in digitalization. 

W.Va. Battery Manufacturer Gets $10 Million Federal Boost

The facility will employ 75 workers, and former mine workers will be recruited and trained for the positions. 

The U.S. Department of Energy awarded Sparkz nearly $10 million to produce iron phosphate in a shuttered glass factory in Bridgeport.

Iron phosphate is a key ingredient in the lithium ion batteries that power electric vehicles but very little is produced domestically.

Sparkz has agreements with the United Mine Workers of America and the West Virginia Economic Development Authority.

The facility will employ 75 workers, and former mine workers will be recruited and trained for the positions.  

Nationwide, the Energy Department is spending $428 million to bolster the clean energy supply chain, with a priority on supporting disadvantaged communities.

Expecting Downgrade, Postal Workers Relieved Jobs Will Stay

The U.S. Postal Service late last year announced a plan to convert the Charleston Processing and Distribution Center into a local processing hub. The change would have sent other functions, and workers, to southwest Pennsylvania.

State and local union leaders reacted with relief as the U.S. Postal Service said it would keep its Charleston mail processing facility.

Craig Brown, president of the American Postal Workers Union Local 133, said his national president called late Wednesday and told him to expect some good news.

He’d been bracing for something else. 

“I fully expected the whole year that whenever they did give us the final result, they would downgrade the plant and send the mail to Pittsburgh before they send it back. So, I was very shocked, to be quite honest about it.”

The U.S. Postal Service late last year announced a plan to convert the Charleston Processing and Distribution Center into a local processing hub. The change would have sent other functions, and workers, to southwest Pennsylvania.

Instead, those workers will stay in Charleston, Brown said, with minimal changes to their work.

“They’re telling us, no impact on jobs,” he said. “No one will leave the facility. No jobs will be lost.”

Just the uncertainty created by the proposal had dampened morale among local workers. Tim Holstein, the union’s local and state vice president, said that all changed on Thursday.

“There was a definite shift in change in the facility, in the mood,” Holstein said. “There were smiles, there were some heads being lifted.”

As a bonus, the Postal Service will invest nearly $23 million in Charleston’s processing center and another $18 million at the main post office downtown. The improvements will include a new roof, new bathrooms and break areas. Electric vehicle charging stations will be installed for a future fleet of delivery trucks.

Holstein thanked the postal customers who voiced their concerns. Josh Sword, president of the West Virginia AFL-CIO, credited union members with doing the work of convincing the public and state and local leaders that the jobs were important to keep from moving out of state.

Sword called it a major victory. 

“My feeling is, if they make the investments into the property, then that’s an indicator that they’re there to stay,” he said, “which is good for local workers and good for the citizens with mail delivery.”

GreenPower Drops Off Full-Size Electric Bus, With More To Come

GreenPower on Thursday delivered its first full-size BEAST model electric bus to Kanawha County Schools built in South Charleston.

A factory in South Charleston continues to roll out electric school buses for West Virginia districts.

GreenPower on Thursday delivered its first full-size BEAST model electric bus to Kanawha County Schools built in South Charleston.

The district has another three on order. All four are part of a total order of 37 statewide to replace diesel buses. They will be delivered by the end of the year, the company said.

Wood County is set to get four also, while Monongalia and Harrison counties will receive three each. 

GreenPower was awarded $18.5 million in December to build 47 buses for West Virginia districts.

The U.S. Environmental Protection Agency awarded the state another $2 million for clean buses last month.

Kanawha County used its own school bus replenishment funds to pay for the BEAST that was delivered on Thursday. It also has ordered the company’s smaller Nano BEAST model.

A Type-D BEAST, the one that was delivered Thursday, seats 90 passengers and has a range of 150 miles. Its aluminum body is made by Constellium, which has a plant in Jackson County.

Inflation Reduction Act Brings Four Companies, 850 Jobs To State

According to E2, a group of business leaders and investors, it has spurred more than $1.3 billion in investment in the state and created 850 jobs.

Eighteen months into its implementation, the Inflation Reduction Act has brought companies and jobs to West Virginia.

The Inflation Reduction Act became law in 2022 with the intent of bringing new clean energy manufacturing to traditional energy communities.

Since then, according to E2, a group of business leaders and investors, it has spurred more than $1.3 billion in investment in the state and created 850 jobs.

The companies include Berkshire Hathaway Energy, Gestamp, Form Energy and Solar Holler.

Berkshire Hathaway is building a solar-powered microgrid on the site of a former aluminum plant in Ravenswood.

Gestamp will make parts for electric vehicles at its plant in South Charleston. Form Energy will build storage batteries at a plant it’s constructing in Weirton.

And Solar Holler is powering the entire Wayne County school system with solar panels.

E2 has tallied a total of 305 projects in 41 states spurred by the law. They represent more than $123 billion in investment and more than $125,000 jobs.

Solar Holler is an underwriter of West Virginia Public Broadcasting.

Exit mobile version