Kentucky is electrifying the future. What to know about the ‘EV capital of the U.S.’

Kentucky has long been a dominant force in the automotive industry, boasting hundreds of factories and producing vehicles for brands like Ford Motor Co . and Toyota Motor .

Now, the commonwealth stands to grow from just a key player for automakers to the “ new Michigan ” with the expanding frontier of electric vehicles.

Since 2020, Kentucky has racked up more than $11.5 billion in EV-related investments. Each investment into the creation of a battery park, a supplier company, or a battery recycling operation has created a plethora of job announcements, with more than 10,000 new jobs coming to Kentucky.

While Kentucky has become what Gov. Andy Beshear has coined “ the EV capital of the United States ,” consumers and politicians continue to show skepticism that the industry, largely propped up under President Joe Biden’s administration, is truly the future for the average Kentuckian.

“I'm still bullish on the EV sector, and I'm very thankful that we got picked for it,” Beshear told The Courier Journal. “It's helping Kentucky to be seen in an entirely new and different way ... and what it says about Kentucky is special and important — we're going to get to be the thinkers of tomorrow and not just the workers.”

Electric cars, while seemingly a radical shift in an industry long fueled by gas, are more than 100 years old, making up nearly one-third of all vehicles on the road in 1900, according to the U.S. Department of Energy .

Regardless of EVs' long existence, the electrification of cars remained on the outskirts of mainstream vehicle manufacturing for years, only recently seeing a rise in demand in the U.S.

As the government push toward electrification continues, Kentucky has benefited economically. Across the state, 13 counties have seen investments toward various parts of the EV supply chain.

As a result, Kentucky will be “one of the few states” with the entire lifecycle of EV production, from the manufacturing and recycling of batteries to the production of parts and vehicle assembly, “ensuring diverse employment opportunities within the industry and throughout the state,” Brandon Mattingly, a spokesperson for the Kentucky Cabinet for Economic Development told The Courier Journal.

Despite the state taking a leadership role in the production of EVs, Kentucky drivers are not fully on board, with only about 10,000 EVs registered in the state at the end of 2023.

Slow adoption of EV vehicles by drivers isn't just a Kentucky problem. Nationwide, drivers face several barriers to EV adoption including the cost to purchase an EV, dealerships' lack of education and incentive to sell the vehicles, and range anxiety, or the fear of running out of power before reaching a charging location.

Even so, Kentucky is doubling down on its commitment to become the "EV capital of the U.S."

“EVs are going to be a very large share of the automotive sector and even through the slower projections we've seen, the capacity we're building in Kentucky will be necessary,” Beshear said.

How massive EV investments are shaping Kentucky's future

The hefty economic investments into the EV sector are reshaping Kentucky and building its future, despite EVs and the industry at large failing to bring overnight success to American automakers.

Regardless, experts say the transition to electric from gas-powered appears inevitable.

“We know this is where the automotive sector is going, the only question is timing,” Beshear said.

Automakers such as Ford are chasing federal government goals of “ having 50 percent of all new vehicle sales be electric by 2030 ,” by investing billions of dollars into EVs .

These million- and billion-dollar investments from manufacturers, part suppliers, and foreign battery technology producers have created facilities across the state, including the massive BlueOval SK Battery Park in Hardin County, which will be the 10th largest manufacturing facility in the world.

BlueOval SK Battery Park, the largest single investment in Kentucky history, being built jointly by Ford and South Korean company SK On, has already spurred rapid growth across the county . The battery park is expected to create 5,000 jobs for Kentuckians and a direct payroll of $265 million in 2026 . On top of this, the battery park project has led to dozens of additional companies moving to Hardin County and created a construction boom for housing to support the anticipated population growth, which is expected to swell by more than 22,000 by 2030.

Ford’s commitment to electrification in Kentucky doesn’t stop there. In Shelby County, the automaker is considering a $400 million parts factory for EV components . The company has also promised an electric future at the Louisville Assembly Plant after the model year 2025 vehicles. While details have not been shared on what will be made at this factory in the future, Ford has said the plant will receive a $1.2 billion investment over four years and will transition to producing an “all-new EV product.”

Aside from Ford, Kentucky has seen companies including Rivian in Bullitt County, Toyota in Scott County and Envision AESC in Warren County, among others, shelling out for large EV investments and creating jobs.

“This was absolutely critical to make sure that Kentucky would not just survive but thrive in being an automotive leader,” Beshear said about his administration's recruitment of EV sector companies. “You think about all the jobs in those Ford plants, you think about all the jobs in the Toyota plant and all the different suppliers that are around. If we weren't a part of it, we aren't a part of the future of the automotive industry.”

While these companies, many of which are international businesses , could choose almost any state to locate, Kentucky has fought to win their investments. The commonwealth's pro-business approach, offering nearly 30 incentive programs and build-ready sites, combined with its swelling labor force and funding for workforce development and training, has made the state desirable for foreign EV companies wanting to be in the U.S. market.

"From workforce training to proximity to our end customer, Kentucky was hard to match for establishing and launching such a large manufacturing site," said David Hahm, head of North America public affairs for SK On and former CEO for BlueOval SK . "We also saw a strong pool of available workers in the surrounding area and a government partner ready to help us attract and train workers for skilled, manufacturing jobs."

Even with investments, consumers still aren't sold on buying EVs

As the state continues its efforts to support all the arriving EV investments, a disconnect remains with consumers.

Last year, the nation saw a record 1.2 million EVs sold , but sales slowed through early 2024 . In Kentucky, EV sales, which accounted for 2.5% of all vehicle sales in 2023 Q1, dropped by 0.1% for the same quarter in 2024.

According to Cox Automotive Industry Insights Director Stephanie Valdez Streaty, Kentucky consumers are faced with several barriers to EV adoption, including vehicle costs, living in a rural area, a general lack of awareness and education on EVs, and a lack of charging infrastructure.

"I definitely think the future's electric ... with any new technology there's paces of adoption, and so EVs are no exception," Valdez Streaty said.

Industry experts are still projecting nationwide growth in sales, with Bank of America auto analyst John Murphy expecting EVs to reach 11% of sales nationwide this year and rise steadily to 25% in 2027, the Detroit Free Press reported .

In a May shareholders call, Ford CEO Jim Farley said the company has been working to time the ramp-up of production of EVs and battery parts with higher consumer demand.

Since then, automakers across the country, including General Motors, Volkswagen, Mercedes Benz and others have announced delays in EV products previously promised and the scaling back of production. These moves come, in part, because of the national consensus that consumers continue to reiterate — they're not sold on EVs.

A recent study from AAA found that consumer demand for EVs has dropped to only 18% of consumers being "very likely" or "likely" to buy an EV, down from 23% last year. Even more telling is the 63% of consumers who indicated they are "unlikely" or "very unlikely" to purchase an EV.

If automakers are unable to attract consumers to EVs and make a profit on these vehicles the way they do with gas cars, the billions of dollars in investments into states like Kentucky stand to provide little return and create unstable jobs for areas propped up by the industry.

This delay has already been seen at the BlueOval SK Battery Park when last year Ford announced the second of the twin battery plants at the site would be delayed rather than opening in 2026 when initially anticipated.

“The pace of adoption is slower than what folks in the industry, including Ford, originally expected,” Ford spokesperson T.R. Reid told The Courier Journal in October .

Recently, SK On, part of the battery park joint venture, has found itself in an “emergency” situation as sales of its batteries in the U.S. and Europe have been below expectations, the Financial Times reported . When asked if this would further delay the Kentucky battery park, BlueOval SK spokesperson Mallory Cooke said, “We will continue to keep a close eye on customer demand and work with our parent companies to ramp up battery production at Kentucky 2 when appropriate.”

In a July quarterly earnings call, Farley said the early EV adopters are a different consumer type than the "early majority customers" who are looking for the things they are used to in gas cars to be identical in function and practicality with EVs. While EVs offer many of the same interior vehicle comforts consumers are accustomed to, many still struggle to compete with gas vehicles when it comes to the variety of vehicle types, pricing and ease of refueling as the nationwide network of charging stations continues to develop at a slow pace.

"Overall, the EV journey has been humbling," Farley said about the slow consumer adoption of EVs.

Why consumer experiences buying EVs still vary

Others are trying to entice consumers to try EVs, such as the U.S. Department of Energy-funded Rural Reimagined program , which allows participants living in Appalachia to borrow an EV for free for up to six weeks.

Travis Stacy, who works for Licking Valley Rural Electric Cooperative and lives in rural Kentucky, said he was “skeptical of the electric car revolution,” but participated in the program. He found things like the charging process, the range anxiety, and how the vehicles accelerate to be outside of his gas-powered comfort zone.

Despite these hangups, Stacy enjoyed driving the EV Chevrolet Bolt, he told The Courier Journal, which is a stark contrast from his Chevrolet Duramax Diesel truck.

However, while he found the EV to be practical for daily tasks, Stacy does not anticipate he will switch to an EV, noting some of the initial barriers that made him skeptical are still reasons he hesitates.

Stacy's feelings are echoed by consumers across the country. Daniel Mekuria, general manager of James Collins Ford in downtown Louisville, said his dealership struggles to sell EVs, noting consumers are weary of the price point, which can cost anywhere from $40,000 for a base model Mach-E to $85,000 for a souped-up F-150 Lightning pickup truck.

In addition, like Stacy, consumers mentioned range anxiety and a lack of EV options available at dealerships.

“We’re not ready yet, maybe in the next five years,” Mekuria said about consumers fully embracing EVs.

However, not all consumers have allowed these barriers to stop them from getting an EV. Buddy Wheeler, owner of Tattoo Charlie’s on Preston Highway, was an early adopter of the electric car concept, having driven some form of a hybrid or fully electric vehicle since 2003.

An avid road tripper, Wheeler and his teenage daughter, Zelda, recently traveled to Cleveland, Ohio, to see the Rolling Stones in their Kia EV 6. Wheeler said the trip was smooth and to avoid range anxiety on the road, he spent time before departing Louisville to plan charging stops.

“We never felt like we were in danger of being stranded,” Wheeler said.

In 2018, Wheeler had a charger installed at his tattoo studio, at 7904 Preston Highway. He used to see hardly anybody using the charger at the studio, but now, he sees someone using the charger “almost every day.”

“We figured out that an EV will do probably 95% of what we need to do in our daily lives, and for the 5% of time ... we can go rent a truck for a day from Lowe's,” Wheeler said.

Zelda, 17, said she looks forward to one day buying her own EV.

“A lot of people my age are going to be exposed to it because now is when it's becoming popular, now is when people are hearing about it,” Zelda said.

While not all consumers feel the optimism of EVs like Wheeler, the industry's ability to succeed will depend on consumers choosing to buy EVs, not just automakers flooding places like Kentucky with massive investments into the production of the vehicles.

Beshear remains confident the supply chain being built across the commonwealth to support the EV industry will pay off in the long run, as the industry is expected to pick up in the future.

"We are going to be a global leader in the EV market," Beshear said.

Contact reporter Olivia Evans at oevans@courier-journal.com or on X, formerly known as Twitter at @oliviamevans_ . Connor Giffin is an environmental reporter for The Courier Journal. Reach him directly at cgiffin@gannett.com or on X @byconnorgiffin .

This article originally appeared on Louisville Courier Journal: Kentucky is electrifying the future. What to know about the ‘EV capital of the U.S.’