2021-05-18 U.S. Detroit Trade Center Hwang Joo-young
– The Future of Smart Mobility, Ohio –
– Emerging as an important hub for electric vehicle and battery production –
In the midst of fierce competition among US states to attract companies to become the outposts of the electric vehicle era, JobsOhio, an agency under the Ohio Economic Development Administration in charge of attracting investments, held a webinar for Korean companies. The webinar held on May 5 under the theme of "Where are we now and where are we heading?" was sponsored by the US Embassy in Korea. Key U.S. EV trends and supply chains covered Ohio's value proposition, partnership opportunities, JobsOhio's tailored services and financial incentives to support business growth. Ohio Governor Mark DeWine gave an opening address, and Ohio Asian Manager Amy Ray Jobs, Automotive Division Director Jonathan Bridges, and Ohio Natural Resources Council (NRDC) Energy Policy Director Dan Somiller spoke as speakers.
<Webinar Overview>
Opening Remarks (Governor Mark DeWine of Ohio)
Ohio, the cradle of business success (Amy Ray Jobs, Ohio Asian Manager)
Towards a Safer and Smarter Automotive Future (Jonathan Bridges, Director, Automotive)
Ohio's Renewable Energy (Dan Somiller, NRDC Ohio Energy Policy Director)
Source: JobsOhio, KOTRA Detroit Trade Center Organized
<Governor of Ohio's Opening Remarks>
Source: Webinar Screen Captures
Ohio Governor Mike DeWine said in his opening remarks, “Ohio will become a key hub for electric vehicle and battery production.” “We will instill confidence in industry leaders through successful examples of strategic alliances such as the GM-LG joint venture. ” he emphasized. He continued, “We are efficiently shipping 72% of our assembly production in the United States to key regions of the automotive industry that are within one-day delivery distance. We hope that through this, we will be able to obtain various information and invest.”
State of Ohio's Auto Industry and its Advantages
Ohio is the birthplace of the Wright brothers, the icons of innovation that radically changed people's lives, and where they first experimented with flying. According to Jonathan Bridges, Director of Automotive, the state's total automotive-related output is about $160 billion annually, with more than 670 related companies and institutions. It has the second most abundant automobile-related manpower in the United States (more than 2 people) and ranks first in engine production, second in transmission production, and fourth in automobile production (about 11 million units per year) in the United States. Six OEM manufacturers, nine factories and the iconic Airstream headquarters are located. “The automotive industry is shifting towards the electric vehicle industry, and Ohio is lucky in this regard,” said Bridges.
Excellent access to suppliers and customers, a skilled and experienced trained workforce, and infrastructure/resources for testing and R&D also make Ohio a competitive business environment. As the largest independent research center in the United States, a number of research centers are located in Ohio, including the Transportation Research Center (TRC), where certification, experimentation, and testing of finished vehicles are performed. Manufacturing manpower is also a strength. Ohio's manufacturing workforce is about 70, of which 10 are employed in the automobile industry (as of EMSI 8000, a labor market research institute). When OEM assembly and component manufacturers are counted, Ohio is the second-largest automotive-related state in the United States. It also has 2017 Ohio technology centers, engineering colleges, and trade colleges.
Korean companies can use growth funds
In this webinar, Seo Young-ho, CEO of Jobs Ohio Korea Office, explained various advantages of entering Ohio in this webinar. “The advantage of Ohio is that the labor cost is more than 10% cheaper than the average annual cost of the US and it has a high-quality labor force. There are many advantages to tax as well. For example, if a Korean company investing in Ohio needs local finance, it can borrow by using the Jobs Ohio Growth Fund, which is directly supported by the Ohio State Economic Development Administration, and can borrow up to $500 million.” . CEO Seo added, “Just as the Wright brothers started the era of aviation through innovation, we expect many Korean companies that will lead the innovation of future cars enter and succeed.”
<View of webinar attendees>
*Note: (Clockwise from left) Youngho Seo, CEO of Jobs Ohio Korea Office, Amy Ray, Asian Manager of Jobs Ohio, Jonathan Bridges, Director of Automobile Division, Webinar Moderator Tripton Tuleader, U.S. Embassy in Korea, and Dan Somiller, Director of Energy Policy in Jobs Ohio , Justin Cotter Jobs, Ohio Director
Source: Webinar Screen Captures
Ohio's EV Supply Chain
Over the past five years, total investment in Ohio by automotive OEMs and related companies has reached $5 billion. Ford $40 billion, GM $360 billion, and FCA $13 million in that order, and many other parts makers and related companies are investing in Ohio (see table below). Amy Ray Jobs, Asian manager in Ohio, advises, “Nevertheless, the provision of good services or incentives in Ohio should not be the final investment decision of a company.” The most important thing is to see if your business can grow in the location you choose.
<Major automobile companies and investment size that Ohio has attracted over the past 5 years>
Source: Courtesy of JobsOhio
<Electric Vehicle-related Plans of Automobile Companies in Ohio>
Ford – OEM – plans to launch 2022 electric vehicles by 110 at an investment of $40 billion
Honda – Original Equipment Manufacturer (OEM) – Both electric models will be produced at GM's North American plants and will be available in the US and Canada from 2024. Honda SUV e-Concept will be mass-produced in the future
GM – Automobile Manufacturers (OEMs) – Plans to launch 2023 new EV models by 20 and plans to sell 5 million EVs per year to the Chinese and US markets within five years. Plans to spend about $100 billion a year on electric vehicle development between 2020 and 2025
FCA – Automobile Manufacturers (OEMs) – Will focus more on the hybrid market as plans for $90 billion in U.S. production are finalized
Dana – Auto parts manufacturer – Acquired a venture company specializing in electric propulsion system and control software
Schaeffler – auto parts maker – to strengthen its position in the electric powertrain market
Navistar – Auto Parts Manufacturer – Launches next-generation e-mobility solutions to provide customized electrification solutions for the truck and school bus market
Source: Courtesy of JobsOhio
<Supply Chain of Automobile Companies in Ohio>
Source: Webinar Screen Captures
<Major regions for electric vehicle production in the United States>
Source: Screen capture of webinar and editing of KOTRA Detroit Trade Center
Smart city, leading smart mobility
Honda is actively participating in Ohio's smart city project. Honda, which is also a major driver of Ohio's economic development, started producing the first Honda Accord in the United States in 1982 in Marysville, followed by five state-of-the-art factories in Ohio alone. In 5, Honda collaborated with the city of Marysville to introduce a 'smart intersection' service with future connected technology. A project to upgrade traffic signals and equip at least 2018 vehicles with communication systems is underway, a service that uses technology to connect vehicles and infrastructure so that drivers can detect and avoid potential collisions and accidents. Through this, the city of Marysville will create an environment where businesses, governments and academia can develop and test smart technologies in real-world situations. In addition, Columbus, Ohio, competed with 1200 US cities in the 'Smart City Challenge' conducted by the US Department of Transportation in 2016, and was finally selected as a smart city by the US Department of Transportation. After being selected as a smart city, various projects are being carried out with the support of 77 million dollars from the government and companies, and it is attracting attention for the operation of the 'Smart Circuit', a self-driving public transportation bus (six seater). In addition, it has been making steady efforts with the goal of establishing future car-related experience centers, introducing electric vehicles, and establishing electric vehicle charging stations in all counties.
Ohio's renewable energy
Dan Somiller, Ohio Energy Policy Director, Natural Resources Conservation Council (NRDC*), who spoke about Ohio's renewable energy, said, "Ohio has been ranked 2005th among 50 U.S. cities with the lowest greenhouse gas emissions since 10 due to its efforts to reduce greenhouse gases." “Since 2010, we have been declaring de-coalization and putting all our efforts into dismantling thermal power plants,” he said. Somiller, who emphasized that Ohio's abundant solar resources will accelerate the development of 'solar energy', said, “As we enter an eco-friendly era, automotive OEMs are also expecting their suppliers to use renewable energy. Efforts are needed to meet corporate expectations for reducing greenhouse gas emissions.” Among the regions provided by PJM Electricity Corporation, the use of solar power has been increasing over the past few years. In particular, Ohio ranks second in solar power usage after Virginia, and the usage of solar power is significantly higher than that of hybrid (solar + battery). was high.
*Note: The Natural Resources Conservation Council is an international non-profit organization for the protection of natural resources and carbon reduction with more than 300 million members from various professions in the United States and Beijing.
<Solar Consumption in Ohio>
Source: Webinar Screen Captures
implication
It is a question of whether Ohio, where the large-scale factory of Ultium Cells, a joint venture between LG Chem and GM, related to electric vehicle batteries, which is the biggest core technology at the turning point of the environment-friendly/future mobility era, is built, can become an outpost of innovation for the future automobile industry. Noted. The investment value of Ohio, which overtook Texas to take first place last year in the Governor's Cup (ranking by state economic development project), is being re-evaluated every year.
For Korean companies that are preparing to build factories for production in the United States or are considering investing in them, using an institution like Jobs Ohio could save companies time and money. For Korean companies preparing for investment, the specific services provided by the Jobs Ohio Korean office include plant site placement, introduction, site selection support, and information on available buildings and sites. If you wish to visit the site, you can conduct a site tour in connection with Jobs Ohio, and all customized information such as labor statistics is provided free of charge. Ohio Asian manager Amy Ray said in an interview with KOTRA Detroit Trade Center, “This year, Jobs Ohio created a growth fund for innovative companies such as startups, and everything, including information and application for this fund, is free. We are waiting for companies to contact us.” In an interview, Jonathan Bridges, Automotive Director, Ohio said, “Ohio will be testing everything from TRC, the largest independent transportation testing center in the United States, to Connected Marysville, the world's first fully-embedded connected community. As it is a 'mecca of testing', we expect Korean companies to innovate here.”
* Reference related article (bottom of article): Ohio investment environment and corporate establishment Q&A
Source: Webinar content, JobsOhio.com, TRC, NRCD, Comprehensive materials held by KOTRA Detroit Trade Center