Contract Surety

Manufacturing Construction: Batteries!



Manufacturing construction remains strong. Interestingly, for example, though current demand for electrical vehicles lags, construction of the manufacturing plants needed to produce the batteries is hopping. Analysts say it’s all about taking the long view. 


60 Billion EV Batteries By 2030

It’s estimated that by 2030, electrical vehicles will compromise about 40% of the market share for new vehicles, and “that demand would require about 60 billion batteries and 40 large scale gigafactories….” Building toward that capacity is a big reason construction’s manufacturing section is hopping. For example, this year, Missouri-based JE Dunn is expected to deliver a “$70 million electrical vehicle battery production facility in Clarksville, Tennessee.” Meanwhile, recently, Chicago’s Clayco  “won the contract to build Rivian’s $5 billion EV plant in Stanton Springs, Georgia,” prompting company leadership to observe: “The advanced manufacturing segment is definitely continuing to see significant investment, and I think that’s going to continue to expand at very high rates….We’re going to see a ramping up of actually more capital projects in 2024 than we did last year.”


In total, electrical machinery construction,which includes EV battery plants, hit $35.2 billion in 2023, according to Dodge Construction Network. That’s roughly about 47% of overall manufacturing construction.” Of course, construction is also hopping with other projects spurred on by the federal commitment of $52 billion under the CHIP’s and Science Act of 2022, which has inspired additional, private investment in onshoring manufacturing: “The renewed push to revive American manufacturing after decades of offshoring has led to over $649 billion in private company investment….The multibillion-dollar investments scattered across the country range from biotechnology facilities and chip fabrication plants to electric vehicle battery factories and clean energy projects.” Exemplifying some of the major projects that have broken ground in the past year are: a $25 billion Samsung chip fabrication plant in Taylor, Texas; and, a $20 billion Intel semiconductor chips plant in Licking County, Ohio.


Although Phoenix, Arizona has been an especially hot market for manufacturing builds, a recent report from the Newmark Group points out that really every region of the country is seeing action in one way or another:


Major manufacturing projects are cropping up around where they have the labor pool to do so … .Different stages of manufacturing operations — research and development, pilot plant and mass production — require different types of labor, and must be located accordingly. 


R&D facilities tend to be smaller and located near specific talent such as universities, but at the mass production level, they need a deep labor pool and access to an abundant power supply. Locations with affordable land, lower construction costs, favorable tax structures and financial incentives are most attractive for these types of manufacturing facility projects….


As the action continues, recently announced big builds for manufacturing around the country include: 


  • a $1 billion Stardust Power battery-grade lithium refinery in Muskogee, Oklahoma
  • a $200 million Norththrop Grumman manufacturing facility in Waynesboro, Virginia.
  • Yates Construction’s win on a $3.5 billion Redwood Materials battery recycling plant in Berkeley County, South Carolina.
  • EK Bailey Construction’s award on a $58 million Chromalox manufacturing facility in Ogden, Utah.


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