In a significant blow to the electric vehicle industry in Illinois, Lion Electric, a manufacturer of electric buses, has announced considerable layoffs and a halt to operations at its Joliet facility. About 400 employees across the company will be affected by the layoffs, with the cuts extending to both Canadian and U.S. departments. This decision leaves only 300 staff members to handle bus manufacturing, sales, delivery operations, and customer support, according to information from NBC Chicago.
The suspension of manufacturing, at the Joliet site, casts a shadow on the state's goal of becoming a central hub for electric vehicle production. An endeavor once celebrated by Illinois Gov. J.B. Pritzker, who had touted Illinois' potential to lead the national charge toward zero-emission vehicle use. Despite the suspension, Lion Electric reportedly maintains its strategic significance for Illinois. With Gov. Pritzker's office expressing optimism, in a statement, that the Joliet plant will continue to be a "standard bearer as the largest all-electric US plant dedicated to medium and heavy-duty commercial vehicle production," as Press Secretary Alex Gough told NBC Chicago.
The Joliet facility, which opened its doors in 2022, was initially welcomed as a significant economic development, projected to bring hundreds of new jobs to the local area. However, the recent layoffs and cessation of operations underscore the inherent instability in emerging markets like electric vehicle manufacturing. Critics argue that Illinois taxpayer funds and resources may have been expended on a project with a shaky foundation. In an article by the Chicago Sun-Times, questions were raised regarding the transparency of the subsidies and tax incentives provided to Lion Electric, and the actual number of buses produced at the Joliet plant has yet to be disclosed.
As the Joliet community confronts the economic fallout, Joliet Mayor Terry D’Arcy reported that Lion Electric had been granted a two-week credit extension, which opens up a window for the company to explore options such as a potential sale that could revive the Joliet production site. "The City and the Lion Electric team are in ongoing communication as the situation develops, and we remain committed to supporting efforts to keep Lion Electric operating in our community," D’Arcy said, in a statement to NBC Chicago.
With its initial plans of producing 10,000 buses annually, the Joliet plant's current predicament reflects a broader narrative of struggle and uncertainty in the green energy sector. Other local green initiatives, such as electric car company Rivian's financial distress, also raise concerns about the viability and fiscal prudence of such investments. The future of the electric vehicle manufacturing industry in Illinois, under these circumstances, remains increasingly uncertain as stakeholders wait to see whether these green commitments can materialize into the sturdy economic pillars they were once envisioned to be.
