Tennessee’s once‑booming electric vehicle battery industry is pivoting away from cars and toward data centers’ rapidly rising demand for power.
After consumer EV tax credits ended in late 2025, already soft demand for EVs became even softer and automakers turned their focus to other uses for their multi-billion-dollar battery plants. Companies including Ford, General Motors and Nissan supplier Automotive Energy Supply Corporation (AESC) are shifting production from EV batteries to lithium iron phosphate (LFP) batteries, which can store electricity to be used during periods of peak demand and outages at data centers.
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