Imagine the heart of America’s auto industry: vast manufacturing plants in Michigan, Indiana, Illinois, and Ohio, where generations have built the cars that the nation prides itself on. Today, in these same states, automotive giants like General Motors and Rivian are investing towards an electric based future. The Midwest is now leading the nation’s shift to the next generation of cars, with billions invested into electric vehicle (EV) manufacturing and advanced battery plants.
EV innovation in the Midwest continues, despite the recent massive federal freezing of $148 million for EV charging infrastructure, which as of August 2025 has just been reinstated under revised federal guidelines. However the EV tax credit, worth up to $7,500 for new vehicles and $4,000 for used, is ending after September 30th, 2025. Buyers only have a short window left to benefit from these incentives.
Consumer interest in EVs remains high, and local demand, industry infrastructure, and state incentives remain strong, according to Recurrent, a platform which provides data-driven insights on EV battery health to support informed decisions in the used EV market. In fact, Illinois alone added nearly 37,000 new EV registrations between July 2024 and July 2025, marking a record annual increase. Battery costs have fallen more than 90% over the past 15 years, dropping from about $1,415/kWh in 2008 to just $139/kWh in 2023 for EV battery packs, according to the Department of Energy. To put this in perspective, a typical EV battery pack today costs around $13,900 for a 100 kWh capacity, significantly lowering the overall vehicle price and bringing many EVs closer to the price of comparable gas vehicles, making EVs increasingly affordable, even before factoring in federal incentives. This momentum built for EVs is unlikely to slow soon.
From the Heart of Auto Manufacturing to the Forefront of EVs
For much of the last century, the Midwest was the center of the American auto industry. For example, Michigan led the nation with its car plants, Ohio had a deep culture of driving and highway travel, and Chicago was a hub of busy streets and traffic. As climate concerns grew, the region began shifting toward EVs. Illinois set a target of 1 million EVs by 2030 under the Climate and Equitable Jobs Act (CEJA) enacted in 2021. But as of July 2025, the federal administration’s “One Big Beautiful Bill” ended the electric vehicle tax credit for any new or used EV purchased after September 30, 2025, raising concerns about future progress. “This order could limit Illinois’ ability to achieve its EV future,” explains Brian Urbaszewski, Director of Environmental Health Program at the Respiratory Health Association.
Why EV Momentum in the Midwest Won’t Slow Down
Despite the massive defunding initiatives led by the Trump administration, the Midwest’s climate tech ecosystem is booming:
1. Midwestern Policy and Manufacturing Powerhouses
Michigan, Indiana, and Ohio are driving the Midwest’s EV leadership by combining industrial investment with supportive state policies. Major projects, such as Ford’s BlueOval Battery Park in Michigan, Stellantis-Samsung’s $7.5 billion battery plants in Indiana, and Honda’s $4.4 billion EV hub in Ohio, are creating thousands of jobs while cementing the region’s role in the national EV supply chain.
At the same time, states like Illinois are bolstering this momentum with incentives of up to $4,000 in EV purchase rebates, alongside active programs designed to attract manufacturers like Rivian and invest in clean jobs. Rivian, an American electric vehicle manufacturer specializing in electric SUVs and pickup trucks, is reinforcing Illinois’ leadership by investing billions into cutting-edge EV technologies and local job creation, including its $120 million supplier park in Normal, Illinois.
2. Venture Capital Investment and Local Innovation
Programs like Illinois Tech’s EV Readiness Award highlight cities, such as Chicago, River Forest, and Rolling Meadows, streamlining permitting and engaging residents in EV adoption. Complementing this local leadership, midwestern universities are rapidly training the next generation of EV engineers. For example, the University of Michigan’s Battery Lab focuses on advanced battery research and development, while Illinois Institute of Technology offers EV focused engineering programs, keeping the Midwest at the forefront of global EV innovation.
Meanwhile, venture capital (VC) funds and accelerators like Evergreen Climate Innovations and EHI CleanTech Ventures, both based in Chicago, invest in promising climate and cleantech technologies, making the Midwest a launchpad for climate focused startups. For example, Slate Auto, founded in 2022 in Troy, Michigan, is developing an affordable electric pickup truck with production planned in Indiana. The truck features a minimalist, modular build and manual windows, all in a compact size, and is backed by investors including Jeff Bezos. Similarly, May Mobility, founded in 2017, is advancing autonomous electric shuttle services in Ann Arbor, Michigan, and Peachtree Corners, Georgia, with significant support from VC and government grants.
3. Infrastructure Growth and Consumer Demand
Illinois is rapidly expanding its EV ecosystem, with over 5,100 public charging ports backed by public and private investment, and nearly 37,000 new EV registrations added last year alone. EV demand persists thanks to lower operating costs, an increasing variety of models, and growing public awareness.
Why is consumer interest in EVs continuing to rise? For many drivers, the benefits outweigh the drawbacks. EVs produce less climate pollution than gasoline vehicles, offer annual fuel savings of $800–$1,000 compared to gasoline vehicles, the convenience of home charging, and deliver additional savings through state incentives. These advantages make EVs an increasingly attractive and sustainable alternative to traditional gasoline cars. What’s more, the majority of Illinois’s electricity comes from clean sources, like nuclear, which means driving an EV in Illinois leads to even lower emissions.
Looking ahead, while federal policy uncertainty poses real risks, one reality remains: Midwesterners want EVs. Demand endures, powered by consumer enthusiasm, technological advancements, and robust local incentives.
How You Can Support the Midwest’s EV Revolution
- Advocate for Local and State Policies: Visit the Electrification Coalition’s state policy hub for tips, current bills, and advocacy resources. For example, Illinois recently passed Senate Bill 2375, which broadens the definition of EVs to include plug-in hybrids within state EV laws. This essentially helps facilitate wider participation in incentive programs.
- Stay Informed and Vocal: Sign up for policy alerts and community initiatives from the Metropolitan Mayors Caucus EV Readiness Program and through the Midwest Climate Collaborative.
- Participate in Equitable Mobility Planning: Explore the Center for Neighborhood Technology’s Equitable EV Action Framework for community engagement tools. You can also participate by joining a public city planning meeting focused on transportation, or contribute feedback through online surveys. These opportunities allow you to directly engage with and shape the Midwest’s EV ecosystem.
- Support Local Manufacturing: If you’re planning to buy a car, especially an EV, consider choosing a Midwest made model, such as those at Rivian or the EVs produced at GM factories in Michigan and Ohio.
For data-driven analysis about states leading the EV revolution and nationwide EV infrastructure and trends, check out Recurrent’s detailed 2025 report.
The road ahead
Even with shifting federal priorities, the Midwest’s EV momentum continues, driven by local innovation, strong state policies, and multi-billion-dollar private investment. That said, it is important to acknowledge the counterpoint that Midwestern consumers have historically been slower to adopt electric vehicles compared to other regions. This hesitancy could stem from cultural preferences, economic factors, or the still developing EV infrastructure in some areas.
Reader Question:
With federal funding uncertainties, what hurdles must Illinois and the Midwest overcome to truly achieve their ambitious EV targets by 2030?