Ohio auto industry faces hurdles as U.S. falls behind in EV race

By Farah Siddiqi

Ohio is home to some of the nation’s largest electric vehicle and battery plants but a new report warned the U.S. is lagging behind China in the global EV race, raising questions about the future of auto manufacturing in the state.

Katherine Yusko, research analyst at the nonpartisan American Security Project and lead author of "Charging Ahead: How the U.S. Can Close the Gap in the EV Race," said China’s dominance is hard to ignore.

"China is the largest electric vehicle market in the world by a wide margin," Yusko pointed out. "China also produces 70% of the world's EVs, 80% of the world's lithium-ion batteries used to power EVs. So China is really the world's hotbed for EV production, adoption and innovation."

Ohio ranks among the top states for EV manufacturing, with facilities such as the Ultium Cells battery plant in Warren and Honda’s planned EV hub in Marysville. Still, U.S. automakers face trade barriers, slowing demand, and uncertainty over federal clean-energy tax credits.

Yusko noted the loss of federal incentives could deal a major blow to EV adoption and the ability of Ohio manufacturers to compete abroad.

"These tax credits played a big role in expanding EV adoption in the United States," Yusko explained. "The removal of these credits is really going to slow down domestic demand for EVs. Automakers are going to be unable to use the domestic market as a platform to expand into the international market."

The report recommended restoring federal EV incentives, investing in next-generation battery research and working more closely with allies on critical minerals. Analysts said without strong policy support, Ohio and other auto-producing states risk losing jobs and market share to global competitors.