Researchers Suggest EV Production Could Require More Workers Than ICE Car Manufacturing

Recent research has suggested that electric vehicle manufacturing may require more labor than previously thought. This research goes against conventional knowledge, which indicates EV manufacturing requires fewer workers because of the simplicity of the electric motor, and indicates that electrification may not result in major job losses in the automotive sector.

The nascent electric vehicle industry hasn’t enjoyed 100% support since its inception. While climate-change activists are enthused about the carbon emissions savings America could make by transitioning to battery electric vehicles (BEVs), many people are concerned about the potential implications of ditching internal combustion engine (ICE) cars for battery-powered alternatives.

Many opponents of EV adoption say the movement will cause significant economic harm to the millions of Americans currently employed in the automotive industry. Similar to how the Big Three automotive firms exiting Detroit essentially crippled the city’s economy, some fear that the transition to BEVs could leave countless Americans unemployed and spell economic doom for many communities.

While the internal combustion engine is a marvel of engineering that uses hundreds of moving parts to burn fuel and generate adequate energy, an electric motor essentially comprises a couple of wire-wrapped magnets and a single or dual-speed transmission. Prior to this research, the automotive industry’s understanding was that EV production required around 30% to 40% less labor compared to diesel and petrol-powered cars.

Turner Cotterman, the study coauthor, reports that these estimates are based on the fact that electric cars have significantly fewer moving parts and thus need fewer people to assemble. However, while actual EV assembly may require less manpower, Carnegie Mellon labor researcher and fellow study coauthor Erica Fuchs says that producing electric vehicle batteries, power trains, power-management systems and electric motors calls for quite a lot of labor.

In fact, Fuchs says that building an electric vehicle powertrain is more labor intensive than building internal combustion engines and transmissions. Prior research from the Boston Consulting Group also concluded that the total manufacture of electric cars requires more labor compared to fossil-fuel-powered cars. The two studies add to a small but steadily growing body of research on electric vehicle manufacturing.

Analysis by General Motors also led to the conclusion that EV manufacturing required about the same or even more labor than ICE vehicle production, not less. In a recent video posted to GM’s website, executive vice president for manufacturing Gerald Johnson noted that the company’s labor needs will remain relatively similar to what it has now even as it transitions to a fully electrified line-up of vehicles.

These studies suggest that EV startups such as Kandi Technologies Group Inc. (NASDAQ: KNDI) are not only working to halt global warming and climate change but are also likely to create more jobs compared to the traditional auto industry.

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