The South is quickly emerging as America’s new industrial heartland.
Contrary to popular belief, America’s industrial heartland is not limited to the Midwest. President Joe Biden has delivered many of his “made-in-America” speeches in Ohio, Michigan, and Wisconsin, which are also important battleground states. However, when we examine where the money is being invested, a different picture emerges. The South, spanning from Texas to Virginia, is rapidly becoming America’s new industrial heartland (see map).
The South offers other advantages as well. It has access to affordable power, which is crucial for battery factories that consume large amounts of energy. Among the ten regions monitored by the Energy Information Administration, the “east south central” region, including Kentucky and Tennessee, has the cheapest power in America, costing around six cents per kilowatt hour. This is nearly 20% cheaper than power in the Midwest.
However, this cost advantage is based on the continued reliance on coal in the southeast, which poses a challenge for companies aiming for greener growth. For instance, Kentucky generates approximately 70% of its electricity from coal, the fourth-highest share among all states. Although efforts are being made to incorporate more renewable energy sources, progress is slow. Mr. Noel states, “The fundamental reality is that today, coal-fired facilities are delivering reliable, efficient electricity.”
2023-06-12 14:45:45
Link from www.economist.com
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