More than 1 million workers are directly involved in the manufacturing of automobiles and automotive parts across the United States. As the transition from internal combustion engine vehicles (ICEVs) to battery electric vehicles (BEVs) takes place, it is important to understand how the transition will impact automotive manufacturing workers and the industry. What are the vulnerable occupations, and what transition pathways exist for workers in those occupations? What new occupations and skills will be in demand? And how does the transition impact other workforce considerations, such as job quality, geography of jobs, and workforce inclusivity and diversity?

The report answers these questions using a mixed methods approach that includes a literature review, secondary data analysis, a national survey of auto manufacturing firms, key stakeholder interviews, and feedback from a nine-member advisory council comprising a diverse group of industry experts and stakeholders. It finds that the transition to BEVs will require robust workforce and training programs to support its growth because the differences between ICEVs and BEVs will impact automotive manufacturing processes. Whereas some occupations and roles related to ICEV manufacturing will see declining demand, new skill sets in growing parts of BEV manufacturing will be highly sought-after. All these shifts will require upskilling and reskilling existing workers and training new entrants into BEV manufacturing.

Key Findings

A small subset of workers within OEMs and Tier 1 industries will likely face significant disruption, but there are transition opportunities even for the most vulnerable occupations. About 7 percent of the workers in gasoline engine and engine parts manufacturing are likely to see the most volatility because the components they manufacture are very specific to ICEVs. Battery manufacturing and other adjacent industries related to electronics, software, and data management can offer transition pathways for workers in vulnerable occupations in gasoline engine and engine parts manufacturing.

The BEV transition will increasingly require new digital, advanced manufacturing, and specialized skills. Most additional knowledge needed falls into two categories: BEV-specific knowledge regarding high-voltage safety and battery manufacturing processes and the ability to manage increasingly automated manufacturing processes that are often introduced while factories upgrade or adjust production lines and processes for production of BEVs.

The EV transition is mostly seen as an opportunity, though manufacturers see some downsides as well. The survey of automotive manufacturing firms was conducted in 2024, and, at that time, 59 percent of the automotive manufacturers surveyed saw the transition to BEVs as an opportunity. Only 1 in 10 identified the transition as a “threat,” and approximately 23 percent stated there would be trade-offs.

BEV manufacturing is occurring in both traditional automotive hubs and new manufacturing locations, creating a need for transition strategies and training programs based on different historical and geographic contexts. Depending on a region’s historical involvement with the automotive manufacturing industry, workers may face difficult decisions about their own career transitions, requiring tailored strategies to support them. Hesitancy to relocate and geographically-driven differences in compensation rates and training program availability will have notable impacts on transitioning workers.

The BEV transition presents an opportunity to improve job quality and opportunity for all. While the BEV transition has prompted concerns about job quality and union negotiating power, it also creates potential for inclusive opportunities in automotive manufacturing.

The BEV transition presents key stakeholders—businesses, government, educational and training institutions, labor unions, and others—with an opportunity to maximize the benefits and minimize the challenges for automotive manufacturing workers. Focused, collaborative, and intentional efforts for workforce development are necessary for both workers and the industry to grow and thrive. Specific recommendations include:

  • Develop proactive strategies to address job displacement and disruption of the most vulnerable occupations in automotive manufacturing
  • Train workers for new digital, advanced manufacturing, and specialized skills
  • Reduce risk and uncertainty for BEV manufacturers
  • Invest in workforce development and training programs tailored to specific needs within a state or community
  • Improve job quality and ensure equitable access to opportunity for all