With Indiana’s neighbor to the north the home of the Motor City, it’s easy to forget that many of the biggest automobile innovations came from the Hoosier state.
With its motorsports pedigree and manufacturing backbone, innovations like the rear view mirror, seat belt, super charger and front- and all-wheel drive came racing out of Indiana. Many of those advancements were crafted and refined at the Indianapolis Motor Speedway.
After the Great Depression, auto manufacturers began exiting Indiana for various reasons, and Michigan became the undisputed car-making king.
But Indiana is now smartly positioning itself to be the leader in the next wave of auto innovations especially with respect to autonomous and electric technology.
As I pointed out in this video, electric vehicles (EVs) are undeniably the wave of the future for personal and commercial vehicles. And the Indiana Chamber has supported legislation, including House Bill 1221, that provides for the infrastructure needed for this fast-emerging technology.
By 2025, 10% of all new vehicles will be EVs and by 2040 that figure is expected to jump to 60% with the largest growth in North America.
In a historic vote in August, California regulators agreed to ban the sale of new gasoline-fueled cars by 2035. Other states could follow suit.
While the Indiana Chamber prefers to let free-market forces dictate the moves of private companies, the state can’t turn a blind eye to the potential impact of this. Because California is the largest auto market in the U.S., the move could lead to a nationwide shift.
It behooves Indiana to be ready for a quickening pace of the adoption of EV and other new automotive technologies. By all accounts, the Hoosier state appears to be off to a strong start.
Several major building blocks recently have been put into place, and others appear to be coming.
Ultium Cells LLC, a joint venture between General Motors Co. and LG Energy Solution, filed a tax abatement application with St. Joseph County this summer for a facility in New Carlisle that – based on its investments in similar projects elsewhere – could bring more than $2 billion in investment and more than 1,000 jobs to northern Indiana.
LG and Japanese automaker Honda are investing $4.4 billion in a joint venture in the United States to produce batteries for Honda EVs in the North American market, the two companies said in late August. The plant’s site is still undecided, but construction will begin in early 2023, with mass production of advanced lithium-ion battery cells to start by the end of 2025, company officials said. It’s likely to be near Marysville, Ohio, or Greensburg, where Honda has huge factories that make its most popular models including the Accord, CR-V and Civic.
In May, Stellantis and Samsung announced they will invest $2.5 billion in a joint venture to build a battery plant in Kokomo to support Stellantis’ North America EV battery goals. Stellantis is an American-Italian, French multinational automotive manufacturing corporation formed in 2021 via a merger between the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group. The company is headquartered in Amsterdam.
David Roberts, Indiana Economic Development Corporation executive vice president of entrepreneurship and innovation, points to the development of the non-profit Battery Innovation Center (BIC) in Newberry as a major building block for Indiana’s rapid rise in the EV sector. Built in 2013, the 30,000-plus square foot facility draws workers from traditional manufacturers such as Valvoline and researchers from nearby top-tier engineering universities, including Purdue University and the Rose-Hulman Institute of Technology. The BIC is collaborating with start-ups such as Ateios, which recently moved its headquarters from California to Indiana, to advance battery technology – and raised $1.25 million in venture capital.
These developments have come so fast, with Crains Chicago ringing alarm bells that Indiana is outflanking Illinois in the race to attract firms in the fast-growing realm of EV technology. Crains also trumpeted Illinois’ loss this spring when Samsung chose Indiana for a sizable battery plant.
There are numerous reasons to be excited about EV batteries. Once you get past the battery, the EV supply chain is a lot shorter than the long line of suppliers currently making internal-combustion engine parts.
Not only are they the technology of the automotive future, batteries are by far the most lucrative component of EVs, representing 30% of the total value, according to Bloomberg. Battery plants bring billions in investments and employ thousands of workers.
With all the excitement surrounding EV, it’s easy to overlook the exciting developments in autonomous vehicles happening in the Hoosier state as well.
Last year, following the template of the BIC, Energy Systems Network – a non-profit that leverages Indiana’s global relationships to help develop integrated energy solutions – and the state invited researchers from around the world to participate in the Indy Autonomous Challenge. Nine different teams representing 21 universities competed in a first-of-its-kind, fully autonomous race at the Speedway to advance high-speed AV technology and accelerate the commercialization of driver-assistance systems while improving safety and performance. The event drew national attention.
It’s no surprise that a team during the Indy Autonomous Challenge earlier this year broke the autonomous vehicle speed record, clocking in at 192 miles an hour. It appears our state too is poised to speed ahead in the race for a new generation of automotive technology companies.
