The transition to electrified vehicles: Evaluating the labor demand of manufacturing conventional versus battery electric vehicle powertrains

The ongoing shift from traditional internal combustion engine vehicles (ICEVs) to electric vehicles (EVs) has raised questions about whether this transition will be economically as well as environmentally sustainable. In particular, one concern is the impact on manufacturing labor. Prior studies of the anticipated impacts of vehicle electrification on manufacturing labor requirements are mixed, with some suggesting that producing EVs may require fewer labor hours and jobs than conventional gasoline vehicles and some suggesting that there will be limited impacts on labor outcomes. Moreover, analysis of labor implications has been hindered by a lack of shop floor-level data on the labor hours required for ICEV and EV manufacturing. We collect detailed data on the production process steps required to build key ICEV and battery electric vehicle (BEV) powertrain components and the labor required for each process step. The data include information for 252 process steps, which we collected from the shop floors of leading automotive manufacturers and combine with information on a further 78 process steps found in the existing literature. We then use this data to build a production process model that determines the labor hours required to produce ICEV and BEV powertrain components in a variety of scenarios of different production volumes and labor efficiency levels. We find that, in all scenarios we explore, the labor intensity required for the manufacturing of BEV powertrain components is larger than for ICEV powertrain components. Our results imply that vehicle electrification may lead to more jobs in powertrain manufacturing, at least in the short- to medium-term. These results emphasize the importance of using information about manufacturing process tasks and labor requirements to estimate the labor impacts of EVs, rather than recent approaches concentrating on part counts.