New Challenges for EV Battery Makers: Adapting to Policy and Workforce Shifts

In the fast-moving EV battery sector, staying ahead means keeping an eye on not just market trends but also shifting government policies. Recent executive orders signed by President Trump could significantly affect the industry—especially in areas like workforce strategy, manufacturing focus, and supply chain stability. Here’s what EV battery manufacturers should watch closely:

Energy Policy Shifts: A Mixed Bag for the EV Industry

One of the most immediate impacts is the executive order declaring an “energy emergency,” suspending leases for wind farms and halting the "electric car mandate." Combined with the U.S. withdrawing from the Paris Climate Agreement, these changes signal a reduced emphasis on renewable energy at the federal level.

However, there’s still room for growth in domestic energy production, which may lead to new opportunities for manufacturers—if they can adapt quickly. Companies that focus on sourcing talent with specialized skills in renewable energy and battery production will be better positioned for these shifts.

Tariffs and Rising Production Costs

The executive order imposing a 25% tariff on imported steel and aluminum could significantly impact battery production costs, from casings to key internal components. Supply chain specialists and manufacturers will need to assess their current sourcing strategies and explore alternatives to keep costs under control.

Workforce Availability and Immigration Policies

Tighter immigration policies could make it harder to recruit highly skilled international talent—particularly in engineering, automation, and advanced manufacturing roles that are critical to EV battery production. Companies will need to focus more on local workforce development and upskilling to fill these essential positions.

Domestic Manufacturing Focus: Challenges and Opportunities

The “America First” focus on manufacturing could encourage more investment in domestic production. Initiatives like the proposed U.S. Sovereign Wealth Fund aim to boost domestic capabilities and promote long-term economic security. For EV battery companies, this may create funding opportunities, but it may also come with new compliance requirements.

A good example of this shift is GE Vernova’s recent $600 million investment in U.S. factories. This initiative will create over 1,500 new factory and engineering jobs in sectors like onshore wind, grid solutions, and nuclear energy. Companies like GE are tapping into local talent pools and advanced manufacturing capabilities, which helps them stay competitive while meeting growing demand for energy solutions.

How Are Manufacturers Reacting?

Honda: Building Flexibility and Workforce Resilience
Honda is adapting by retooling its Ohio facilities to produce internal combustion, hybrid, and electric vehicles on the same assembly lines. This approach ensures Honda can quickly adjust to market demands while training its workforce for new roles in EV production and battery pack assembly.

Toyota: Long-Term Investment in Workforce and Production
Toyota’s $14 billion battery plant in North Carolina will begin shipping batteries in April. Along with its phased production strategy, Toyota is investing in workforce development programs through partnerships with local universities. This ensures a steady pipeline of skilled workers to support long-term growth.

Key Takeaways for EV Battery Manufacturers

1. Adapt Quickly to Policy Shifts.
   Flexible operations and an adaptable workforce will help you weather policy changes and market fluctuations.

2. Invest in Local Talent.
   Toyota’s success demonstrates the power of partnerships with educational institutions to develop the future workforce.

3. Build a Resilient Supply Chain.
   With potential disruptions ahead, hiring supply chain specialists is critical for maintaining stability in raw material access and production.

Why It Matters

For EV battery manufacturers, these policy changes highlight the need for strategic workforce planning and adaptability. From rising production costs to local workforce challenges, companies that focus on building the right talent pipeline will stay competitive and agile in the face of change.

At Impel Careers, we help EV battery manufacturers find the talent they need to grow and adapt—whether it’s supply chain specialists, automation experts, or skilled production staff. Let’s connect and build the future of your workforce together.