What cities can learn from the biggest battery-powered electric bus fleet in North America


ttc electric bus

NFPA 70e Training - Arc Flash

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$199
Coupon Price:
$149
Reserve Your Seat Today

Canadian Electric Bus Fleet leads North America as Toronto's TTC deploys 59 battery-electric, zero-emission buses, advancing public transit decarbonization with charging infrastructure, federal funding, lower maintenance, and lifecycle cost savings for a low-carbon urban future.

 

Key Points

Canada's leading battery-electric transit push, led by Toronto's TTC, scaling zero-emission buses and charging.

✅ Largest battery-electric bus fleet in North America

✅ TTC trials BYD, New Flyer, Proterra for range and reliability

✅ Charging infrastructure, funding, and specs drive 2040 zero-emissions

 

The largest battery-powered electric bus fleet in North America is Canadian. Toronto's transit system is now running 59 electric buses from three suppliers, and Edmonton's first electric bus is now on the road as well. And Canadian pioneers such as Toronto offer lessons for other transit systems aiming to transition to greener fleets for the low-carbon economy of the future.

Diesel buses are some of the noisier, more polluting vehicles on urban roads. Going electric could have big benefits, even though 18% of Canada's 2019 electricity from fossil fuels remains a factor.

Emissions reductions are the main reason the federal government aims to add 5,000 electric buses to Canada's transit and school fleets by the end of 2024. New funding announced this week as part of the government's fall fiscal update could also give programs to electrify transit systems a boost.

"You are seeing huge movement towards all-electric," said Bem Case, the Toronto Transit Commission's head of vehicle programs. "I think all of the transit agencies are starting to see what we're seeing ... the broader benefits."

While Vancouver has been running electric trolley buses (more than 200, in fact), many cities (including Vancouver) are now switching their diesel buses to battery-electric buses in Metro Vancouver that don't require overhead wires and can run on regular bus routes.

The TTC got approval from its board to buy its first 30 battery-electric buses in November 2017. Its plan is to have a zero-emissions fleet by 2040.

That's a crucial part of Toronto's plan to meet its 2050 greenhouse gas targets, which requires 100 per cent of vehicles to transition to low-carbon energy by then.

But Case said the transition can't happen overnight. 


Finding the right bus
For one thing, just finding the right bus isn't easy.

"There's no bus, by any manufacturer, that's been in service for the entire life of a bus, which is 12 years," Case said.

"And so really, until then, we don't have enough experience, nor does anyone else in the industry, have enough experience to commit to an all-electric fleet immediately."

In fact, Case said, there are only three manufacturers that make suitable long-range buses — the kind needed in a city the size of Toronto.

Having never bought electric buses before, the city had no specifications for what it needed in an electric bus, so it decided to try all three suppliers: Winnipeg-based New Flyer; BYD, which is headquartered in Shenzhen, China, but built the TTC buses at its Newmarket, Ont. facility; and California-based Proterra.

They all had their strengths and weaknesses, based on their backgrounds as a traditional non-electric bus manufacturer, a battery maker and a vehicle technology and design startup, respectively.

"Each bus type has its own potential challenges." Case said all three manufacturers are working to resolve any adoption challenges as quickly as possible.

But the biggest challenge of all, Case said, is getting the infrastructure in place. 

"There's no playbook, really, for implementing charging infrastructure," he said.

Each bus type needed their own chargers, in some cases using different types of current. Each type has been installed in a different garage in partnership with local utility Toronto Hydro.

Buying and installing them represented about $70 million, or about half the cost of acquiring Toronto's first 60 electric buses. The $140 million project was funded by the federal Public Transit Infrastructure Fund.

Case said it takes about three hours to charge a battery that has been fully depleted. To maximize use of the bus, it's typically put on a long route in the morning, covering 200 to 250 kilometres. Then it's partially charged and put on a shorter run in the late afternoon.

"That way we get as much mileage on the buses as we can."


Cost and reliability?
Besides the infrastructure cost of chargers, each electric bus can cost $200,000 to $500,000 more per bus than an average $750,000 diesel bus. 

Case acknowledges that is "significantly" more expensive, but it is offset by fuel savings over time, as electricity costs are cheaper. Because the electric buses have fewer parts than diesel buses, maintenance costs are also about 25 per cent lower and the buses are expected to be more reliable.

As with many new technologies, the cost of electric buses is also falling over time.

Case expects they will eventually get to the point where the total life-cycle cost of an electric and a diesel bus are comparable, and the electric bus may even save money in the long run.

As of this fall, all but one of the 60 new electric buses have been put into service. The last one is expected to hit the road in early December.

Summer testing showed that air conditioning the buses reduced the battery capacity by about 15 per cent. 

But the TTC needs to see how much of the battery capacity is consumed by heating in winter, at least when the temperature is above 5 C. Below that, a diesel-powered heater kicks in.

Once testing is complete, the TTC plans to develop specifications for its electric bus fleet and order 300 more in 2023, for delivery between 2023 and 2025.


Potential benefits
Even with some diesel heating, the TTC estimates electric buses reduce fuel usage by 70 to 80 per cent. If its whole fleet were switched to electric buses, it could save $50 million to $70 million in fuel a year and 150 tonnes of greenhouse gases per bus per year, or 340,000 tonnes for the entire fleet.

Other than greenhouse gases, electric buses also generate fewer emissions of other pollutants. They're also quieter, creating a more comfortable urban environment for pedestrians and cyclists.

But the benefits could potentially go far beyond the local city.

"If the public agencies start electrifying their fleet and their service is very demanding, I think they'll demonstrate to the broader transportation industry that it is possible," Case said.

"And that's where you'll get the real gains for the environment."

Alex Milovanoff, a postdoctoral researcher in the University of Toronto's department of civil engineering, did a U of T EV study that suggested electrified transit has a crucial role to play in the low-carbon economy of the future.

His calculations show that 90 per cent of U.S. passenger vehicles — 300 million — would need to be electric by 2050 to reach targets under the global Paris Agreement to fight climate change.

And that would put a huge strain on resources, including both the mining of metals, such as lithium and cobalt, that are used in electric vehicle batteries and the electrical grid itself.

A better solution, he showed, was combining the transition to electric vehicles with a reduction in the number of private vehicles, and higher usage of transit, cycling and walking.

"Then that becomes a feasible picture," he said.

What's needed to make the transition
But in order to make that happen, governments need to make investments and navigate the 2035 EV mandate debate on timelines, he added.

That includes subsidies for buying electric buses and building charging stations so transit agencies don't need to make fares too high. But it also includes more general improvements to the range and reliability of transit infrastructure.

"Electrifying the bus fleet is only efficient if we have a large public transit fleet and if we have many buses on the road and if people take them," Milovanoff said.

In its fall economic update on Monday, the federal government announced $150 million over three years to speed up the installation of zero-emission vehicle infrastructure.

Josipa Petrunic, CEO of the Canadian Urban Transit Research and Innovation Consortium, a non-profit organization focused on zero-carbon mobility and transportation, said that in the past, similar funding has paid for high-powered charging systems for transit systems in B.C. and Ontario. But that's only a small part of what's needed, she said.

"Infrastructure Canada needs to come to the table with the cash for the buses and the whole rest of the system."

She said funding is needed for:

Feasibility studies to figure out how many and what kinds of buses are needed for different routes in different transit systems.

Targets and incentives to motivate transit systems to make the switch.

Incentives to encourage Canadian procurement to build the industry in Canada.

Technology to collect and share data on the performance of electric vehicles so transit systems can make the best-possible decisions to meet the needs of their riders.

Petrunic said that a positive side-effect of electrifying transit systems is that the infrastructure can support, in addition to buses, electric trucks for moving freight.

"It's not a lot given that we have 15,000 buses out there in the transit fleet," she said.

"But we should be able to get a lot further ahead if we match the city commitments to zero emissions with federal and provincial funding for jobs creating zero-emissions technologies."

 

Related News

Related News

Electric car charging networks jostle for pole position amid Biden's push to electrify

EV Charging Infrastructure Expansion accelerates as DC fast charging, Level 2 stations, and 150-350 kW networks grow nationwide, driven by Biden's plan, ChargePoint, EVgo, and Electrify America partnerships at retailers like Walmart and 7-Eleven.

 

Key Points

The nationwide build-out of public EV chargers, focusing on DC fast charging, kW capacity, and retailer partnerships.

✅ DC fast chargers at 150-350 kW cut charge times

✅ Retailers add ports: Walmart and 7-Eleven expand access

✅ Investments surge via ChargePoint, EVgo, Electrify America

 

Today’s battery-electric vehicles deliver longer range at a lower cost, are faster and more feature-laden than earlier models. But there’s one particular challenge that still must be addressed: charging infrastructure across the U.S.

That’s a concern that President Joe Biden wants to address, with $174 billion of his proposed infrastructure bill to be used to promote the EV boom while expanding access. About 10 percent of that would help fund a nationwide network of 500,000 chargers.

However, even before a formal bill is delivered to Congress, the pace at which public charging stations are switching on is rapidly accelerating.

From Walmart to 7-Eleven, electric car owners can expect to find more and more charging stations available, as automakers strike deals with regulators, charger companies and other businesses, even as control of charging remains contested.

7-Eleven convenience chain already operates 22 charging stations and plans to grow that to 500 by the end of 2022. Walmart now lets customers charge up at 365 stores around the country and plans to more than double that over the next several years.

According to the Department of Energy, there were 20,178 public chargers available at the end of 2017. That surged to 41,400 during the first quarter of this year, as electric utilities pursue aggressive charging plans.

The vast majority of those available three years ago were “Level 2,” 240-volt AC chargers that would take as much as 12 hours to fully recharge today’s long-range BEVs, like the Tesla Model 3 or Ford Mustang Mach-E. Increasingly, new chargers are operating at 400 volts and even 800 volts, delivering anywhere from 50 to 350 kilowatts. The new Kia EV6 will be able to reach 80 percent of its full capacity in just 18 minutes.

“Going forward, unless there is a limit to the power we can access at a particular location, all our new chargers will have 150 to 350 kilowatt capacity,” Pat Romano, CEO of ChargePoint, one of the world’s largest providers of chargers, told NBC News.

ChargePoint saw its first-quarter revenues jump by 24 percent to $40.5 million this year, a surge largely driven by rapid growth in the EV market. Sales of battery cars were up 45 percent during the first quarter, compared to a year earlier. To take advantage of that growth, ChargePoint added another 6,000 active ports — the electric equivalent of a gas pump — during the quarter. It now has 112,000 active charge ports.

In March, ChargePoint became the world’s first publicly traded global EV charging network. It completed a SPAC-style merger with Switchback Energy Acquisition Corporation. Rival EVgo plans to go through a similar deal this month with the "blank check" company Climate Change Crisis Real Impact Acquisition Corporation (CRIS), which has valued the charge provider at $2.6 billion.

“We look forward to highlighting EVgo’s leadership position and its significant opportunity for long-term growth in the climate critical electrification of transport sector,” CRIS CEO David Crane said Tuesday, ahead of an investor meeting with EVgo.

Electrify America, another emerging giant, has its own deep-pocket backer. The suburban Washington, D.C.-based firm was created using $2 billion of the settlement Volkswagen agreed to pay to settle its diesel emissions scandal. It is doling that out in regular tranches and just announced $200 million in additional investments — much of that to set up new chargers.

Industry investments in BEVs will top $250 million this decade, and could even reach $500 billion. That's encouraging automakers like Volkswagen, Ford and General Motors to tie up with individual charger companies, including plans to build 30,000 chargers nationwide.

In 2019, GM set up a partnership with Bechtel to build a charger network that will stretch across the U.S.

Others are establishing networks of their own, as Tesla has done with its Supercharger network.

Each charging network is leveraging relationships to speed up installations. Ford is offering buyers of its Mustang Mach-E 250 kilowatt-hours of free energy through Electrify America stations and is also partnering with Bank of America to “let you charge where you bank,” the automaker said.

Even if Biden gets his infrastructure plan through Congress quickly, other government agencies are already getting in to the charger business, even as state power grids brace for increased loads. That includes New York State which, in May, announced plans to put 150 new ports into place by year-end.

"Expanding high-speed charging in local markets across the state is a crucial step in encouraging more drivers to choose EVs,” said Gov. Andrew Cuomo, adding that, "public-private partnerships enable New York to build a network of fast, affordable and reliable electric vehicle public charging stations in a nimble and affordable way."

One of the big questions is how many charging stations actually are needed. There are 168,000 gas stations in the U.S., according to the Dept. of Energy. But the goal is not a one-for-one match, stressed ChargePoint CEO Romano, because “80 percent of EV owners today charge at home, and energy storage promises added flexibility, … and we expect that to continue to be the case."

But there are still many potential owners who won’t be able to set up their own chargers, and a network will still be needed for those driving long distances. Until that happens, many motorists will be reluctant to switch.

 

Related News

View more

Aboitiz receives another award for financing for its Tiwi and Makban geothermal plant

AP Renewables Inc. Climate Bond Award recognizes Asia-Pacific project finance, with ADB and CNBC citing the first Climate Bond, geothermal refinancing in local currency, and CGIF-backed credit enhancement for emerging markets.

 

Key Points

An award for APRI's certified Climate Bond, highlighting ADB-backed financing and geothermal assets across Asia-Pacific.

✅ First Climate Bond for a single project in an emerging market

✅ ADB credit enhancement and CGIF risk participation

✅ Refinanced Tiwi and MakBan geothermal assets via local currency

 

The Asian Development Bank (ADB) and CNBC report having given the Best Project For Corporate Finance Transaction award to a the renewable energy arm of Aboitiz Power, AP Renewables Inc. (APRI), for its innovative and impactful solutions to key development challenges.

In March 2016, APRI issued a local currency bond equivalent to $225 million to refinance sponsor equity in Tiwi and MakBan. ADB said it provided a partial credit enhancement for the bond as well as a direct loan of $37.7 million, a model also seen in EIB long-term financing for Indian solar projects.

The bond issuance was the first Climate Bond—certified by the Climate Bond Initiative—in Asia and the Pacific and the first ever Climate Bond for a single project in an emerging market.

“The project reflects APRI’s commitment to renewable energy, as outlined in the IRENA report on decarbonising energy in the region,” ADB said in a statement posted on its website.

The project also received the 2016 Bond Deal of the Year by the Project Finance International magazine of Thomson Reuters, Asia Pacific Bond Deal of the Year from IJGlobal and the Best Renewable Deal of the Year by Alpha Southeast Asia, reflecting momentum alongside large-scale energy projects in New York reported elsewhere.

ADB’s credit enhancement was risk-participated by the Credit Guarantee Investment Facility (CGIF), a multilateral facility established by Asean + 3 governments and ADB to develop bond markets in the region.

APRI is a subsidiary of AboitizPower, one of Philippines’ biggest geothermal energy producers, and the IRENA study on the Philippines' electricity crisis provides broader context as it owns and operates the Tiwi and Makiling Banahaw (MakBan) geothermal facilities, the seventh and fourth largest geothermal power stations in the world, respectively.

“The awards exemplify the ever-growing importance of the private sector in implementing development work in the region,” ADB’s Private Sector Operations Department Director General Michael Barrow said.

“Our partners in the private sector provide unique solutions to development challenges — from financing to technical expertise — and today’s winners are perfect examples of that,” he added.

The awarding ceremony took place in Yokohama, Japan during an event co-hosted by CNBC and ADB at the 50th Annual Meeting of ADB’s Board of Governors.

The awards focus on highly developmental transactions and underline the important work ADB clients undertake in developing countries in Asia and the Pacific.

 

Related News

View more

Clean Energy Accounts for 50% of Germany's Electricity

Germany Renewable Energy Milestone marks renewables supplying 53% of power, with record onshore wind and peak solar; hydrogen-ready gas plants and grid upgrades are planned to balance variability amid Germany's coal phase-out.

 

Key Points

It marks renewables supplying 53% of Germany's power, driven by wind and solar records in the energy transition.

✅ 53% of generation and 52% of consumption in 2024

✅ Onshore wind hit record; June solar peaked

✅ 24 GW hydrogen-ready gas plants planned for grid balancing

 

For the first time, renewable energy sources have surpassed half of Germany's electricity production this year, as indicated by data from sustainable energy organizations.

Preliminary figures from the Center for Solar Energy and Hydrogen Research alongside the German Association of Energy and Water Industries (BDEW) show that the contribution of green energy has risen to 53%, echoing how renewable power surpassed fossil fuels in Europe recently, a significant increase from 44% in the previous year.

The year saw a record output from onshore wind energy, as investments in European wind power climbed, and an unprecedented peak in solar energy production in June, as reported by the organizations. Additionally, renewable sources constituted 52% of Germany's total power consumption, marking an increase of approximately five percentage points.

Germany, Europe's leading economy, heavily impacted by Russia's reduced natural gas supplies last year, as Europeans push back from Russian oil and gas across the region, has been leaning on renewable sources to bridge the energy gap. This shift comes even as the country temporarily ramped up coal usage last winter. Having phased out its nuclear power plants earlier this year, Germany aims for an 80% clean energy production by 2030.

In absolute numbers, Germany produced a record level of renewable energy this year, supported by a solar power boost during the energy crisis, approximately 267 billion kilowatt-hours, according to the associations. A decrease of 11% in overall energy production facilitated a reduced reliance on fossil fuels.

However, Europe's transition to more sustainable energy sources, particularly offshore wind, has encountered hurdles such as increased financing and component costs, even as neighbors like Ireland pursue an ambitious green electricity goal within four years. Germany continues to face challenges in expanding its renewable energy capacity, as noted by BDEW’s executive board chairwoman, Kerstin Andreae.

Andreae emphasizes that while energy companies are eager to invest in the transition, they often encounter delays due to protracted approval processes, bureaucratic complexities, and scarcity of land despite legislative improvements.

German government officials are close to finalizing a strategy this week for constructing multiple new gas-fired power plants, despite findings that solar plus battery storage can be cheaper than conventional power in Germany, a plan estimated to cost around 40 billion euros ($44 billion). This initiative is a critical part of Germany's strategy to mitigate potential power shortages that might result from the discontinuation of coal power, particularly given the variability in renewable energy sources.

A crucial meeting involving representatives from the Economy and Finance Ministries, along with the Chancellor's Office, is expected to occur late Tuesday. The purpose is to finalize this agreement, according to sources who requested anonymity due to restrictions on public disclosure.

The Economy Ministry, spearheading this project, confirmed that intensive discussions are ongoing, although no further details were disclosed.

Germany's plan involves utilizing approximately 24 gigawatts (GW) of energy from hydrogen, including emerging offshore green hydrogen options, and gas-fired power plants to compensate for the fluctuations in wind and solar power generation. However, the proposal has faced challenges, particularly regarding the allocation of public funds for these projects, with disagreements arising with the European Union's executive in Brussels.

Environmental groups have also expressed criticism of the strategy. They advocate for an expedited end to fossil fuel usage and remain skeptical about the energy sector's arguments favoring natural gas as a transitional fuel. Despite natural gas emitting less carbon dioxide than coal, environmentalists question its role in Germany's energy future.

 

 

Related News

View more

UK Renewable energy projects worth billions stuck on hold

UK Renewable Grid Connection Delays threaten the 2035 zero-carbon electricity target as National Grid queues stall wind and solar projects, investors, and infrastructure, slowing clean energy deployment, curtailing capacity build-out, and risking net-zero progress.

 

Key Points

Prolonged National Grid queues delaying wind and solar connections, jeopardizing the UK's 2035 clean power target.

✅ Up to 15-year waits for grid connections

✅ Over £200bn projects stuck in the queue

✅ Threatens zero-carbon electricity by 2035

 

The UK currently has a 2035 target for 100% of its electricity to be produced without carbon emissions, while Ireland's green electricity progress offers a nearby benchmark within the next four years.

But meeting the target will require a big increase in the number of renewable projects across the country. It is estimated as much as five times more solar and four times as much wind is needed, with growth in UK offshore wind expected to play a key role here.

The government and private investors have spent £198bn on renewable power infrastructure since 2010, alongside European wind investments recorded last year. But now energy companies are warning that significant delays to connect their green energy projects to the system will threaten their ability to bring more green power online.

A new wind farm or solar site can only start supplying energy to people's homes once it has been plugged into the grid.

Energy companies like Octopus Energy, one of Europe's largest investors in renewable energy, say they have been told by National Grid that they need to wait up to 15 years for some connections, even as a new 10 GW contract aims to speed UK grid additions - far beyond the government's 2035 target.

'Longest grid queues in Europe'
There are currently more than £200bn worth of projects sitting in the connections queue, the BBC has calculated.

Around 40% of them face a connection wait of at least a year, according to National Grid's own figures. That represents delayed investments worth tens of billions of pounds, reflecting stalled grid spending that slows renewable rollouts.

"We currently have one of the longest grid queues in Europe," according to Zoisa North-Bond, chief executive of Octopus Energy Generation.

The problem is so many new renewable projects are applying for connections, the grid cannot keep up with required network expansion such as new pylons in Scotland being discussed nationwide.

The system was built when just a few fossil fuel power plants were requesting a connection each year, but now there are 1,100 projects in the queue, a challenge mirrored by U.S. grid hurdles in moving toward 100% renewables today.

 

Related News

View more

American wind power congratulates President-elect Biden on his victory.

American Wind Power Statement on Biden highlights collaboration on renewable energy policy, clean energy jobs, carbon-free power, climate action, and a modern grid to grow the economy while keeping electricity costs low.

 

Key Points

AWEA commits to work with Biden on renewable policy, clean energy jobs, and a carbon-free U.S. grid.

✅ AWEA cites over 120,000 U.S. wind jobs ready to scale

✅ Supports 100% carbon-free power target by mid-century

✅ Aims to keep electricity costs low with renewable policy

 

American wind power congratulates President-elect Biden on his victory. "We look forward to collaborating with his administration and Congress, after pledges to scrap offshore wind in recent years, as we work together to shape a cleaner and more prosperous energy future for America, where wind and solar surpass coal in generation across the country.

The President-elect and his team have laid out an ambitious, comprehensive approach to energy policy that recognizes renewable energy's ability to grow America's economy and create a cleaner environment, as market majority for clean energy becomes a realistic prospect, while keeping electricity costs low and combating the threat of climate change as wind power surges across many regions.

The U.S. wind sector and its growing workforce of over 120,000 Americans stand ready to help put that plan into action and support the Biden administration in delivering on the immense promise of renewable energy to add well-paying jobs to the U.S. economy, with quarter-million wind jobs forecast in coming years, and reach the President-elect's 100% target for a carbon-free America by the middle of this century, alongside a 100% clean electricity by 2035 goal that charts the near-term path." - Tom Kiernan, CEO of the American Wind Energy Association.

 

Related News

View more

Electric Cars Have Hit an Inflection Point

U.S. EV Manufacturing Expansion accelerates decarbonization as Ford and SK Innovation invest in lithium-ion batteries and truck assembly in Tennessee and Kentucky, building new factories, jobs, and supply chain infrastructure in right-to-work states.

 

Key Points

A rapid scale-up of U.S. electric vehicle production, battery plants, and assembly lines fueled by major investments.

✅ Ford and SK build battery and truck plants by 2025

✅ $11.4B investment, 11,000 jobs in TN and KY

✅ Right-to-work context reshapes union dynamics

 

One theme of this newsletter is that the world’s physical infrastructure will have to massively change if we want to decarbonize the economy by 2050, which the United Nations has said is necessary to avoid the worst effects of the climate crisis. This won’t be as simple as passing a carbon tax or a clean-electricity mandate: Wires will have to be strung as the power grid expands; solar farms will have to be erected; industries will have to be remade. And although that kind of change can be orchestrated only by the government (hence the importance of the infrastructure bills in Congress), consumers and companies will ultimately do most of the work to make it happen.

Take electric cars, for instance. An electric car is an expensive, highly specialized piece of technology, but building one takes even more expensive, specialized technology—tools that tend to be custom-made, large and heavy, and spread across a factory or the world. And if you want those tools to produce a car in a few years, you have to start planning now, as the EV timeline accelerates ahead.

That’s exactly what Ford is doing: Last night, the automaker and SK Innovation, a South Korean battery manufacturer, announced that they were spending $11.4 billion to build two new multi-factory centers in Tennessee and Kentucky that are scheduled to begin production in 2025. The facilities, which will hire a combined 11,000 employees, will manufacture EV batteries and assemble electric F-series pickup trucks. While Ford already has several factories in Kentucky, this will be its first plant in Tennessee in six decades. The 3,600-acre Tennessee facility, located an hour outside Memphis, will be Ford’s largest campus ever—and its first new American vehicle-assembly plant in decades.

The politics of this announcement are worth dwelling on. Ford and SK Innovation were lured to Tennessee with $500 million in incentives; Kentucky gave them $300 million and more than 1,500 acres of free land. Ford’s workers in Detroit have historically been unionized—and, indeed, a source of power in the national labor movement. But with these new factories, Ford is edging into a more anti-union environment: Both Tennessee and Kentucky are right-to-work states, meaning that local laws prevent unions from requiring that only unionized employees work in a certain facility. In an interview, Jim Farley, Ford’s CEO, played coy about whether either factory will be unionized. (Last week, the company announced that it was investing $250 million, a comparative pittance, to expand EV production at its unionized Michigan facilities.)

That news might depress those on the left who hope that old-school unions, such as the United Auto Workers, can enjoy the benefits of electrification. But you can see the outline of a potential political bargain here. Climate-concerned Democrats get to see EV production expand in the U.S., creating opportunities for Canada to capitalize as supply chains shift, while climate-wary Republicans get to add jobs in their home states. (And unions get shafted.) Whether that bargain can successfully grow support for more federal climate policy, further accelerating the financial-political-technological feedback loop that I’ve dubbed “the green vortex,” remains to be seen.

Read: How the U.S. made progress on climate change without ever passing a bill

More important than the announcement is what it portends. In the past, environmentalists have complained that even when the law has required that automakers make climate-friendly cars, they haven’t treated them as a major product. It’s easy to tune out climate-friendly announcements as so much corporate greenwashing, amid recurring EV hype, but Ford’s two new factories represent real money: The automaker’s share of the investment exceeds its 2019 annual earnings. This investment is sufficiently large that Ford will treat EVs as a serious business line.

And if you look around globally, you’ll see that Ford isn’t alone. EVs are no longer the neglected stepchild of the global car industry. Here are some recent headlines:

Nine percent of new cars sold globally this year will be EVs or plug-in hybrids, according to S&P Global. That’s up from 3 percent two years ago, a staggering, iPhone-like rise.

GM, Ford, Volkswagen, Toyota, BMW, and the parent company of Fiat-Chrysler have all pledged that by 2030, at least 40 percent of their new cars worldwide will run on a non-gasoline source, and there is scope for Canada-U.S. collaboration as companies turn to electric cars. A few years ago, the standard forecast was that half of new cars sold in the U.S. would be electric by 2050. That timeline has moved up significantly not only in America, but around the world. (In fact, counter to its high-tech self-image, America is the laggard in this global transition. The two largest markets for EVs worldwide are China and the European Union.)

More remarkably (and importantly), automakers are spending like they actually believe that goal: The auto industry as a whole will pump more than $500 billion into EV investment by 2030, and new assembly deals are putting Canada in the race. Ford’s investment in these two plants represents less than a third of its planned total $30 billion investment in EV production by 2025, and that’s relatively small compared with its peers’. Volkswagen has announced more than $60 billion in investment. Honda has committed $46 billion.

Norway could phase out gas cars ahead of schedule. The country has one of the world’s most robust pro-EV policies, and it is still outperforming its own mandates. In the most recent accounting period, eight out of 10 cars had some sort of electric drivetrain. If the current trend holds, Norway would sell its last gas car in April of next year—and while I doubt the demise will be that steep, consumer preferences are running well ahead of its schedule to ban new gas-car sales by 2025.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified