In the last decade, electric vehicles (EVs) have transitioned from niche status to a full-blown industrial revolution. A record 1.2 million electric vehicles were purchased by U.S. buyers in 2023, according to Kelley Blue Book. The EV share of the total U.S. vehicle market was 7.6% in 2023, which increased from 5.9% in 2022.

To foster the U.S.’s transition to electric vehicles, the Biden administration’s Federal Sustainability Plan requires all federal agencies to switch to light-duty electric vehicles by 2027 and heavy-duty zero-emission vehicles by 2035. Federal agencies have also committed to adding an additional 24,000 and more charging stations at federal facilities. But beyond the shiny new tech and sustainability buzz, something deeper is underway: EVs are redefining how we build cars.

This shift isn’t just about swapping gas tanks for batteries—it’s a full-scale reinvention of the manufacturing model that powered the automotive industry for over a century.

From Gears to Gigafactories: The Shift in Manufacturing DNA

Traditional internal combustion engine (ICE) vehicles have thousands of moving parts—pistons, spark plugs, timing belts, and exhaust systems. Manufacturing them involves complex, global supply chains and high mechanical labor.

By contrast, EVs are structurally simpler. No engines or transmissions. Just electric motors, power electronics, and battery packs. Some EVs have as few as 20 moving parts in the drivetrain. This simplicity allows for leaner, faster, and more automated production lines.

Tesla’s approach epitomizes this model. Their Gigafactories are vertically integrated, data-driven powerhouses combining parts manufacturing, assembly, and even AI-led quality control under one roof. It’s not just about efficiency—it’s a whole new kind of factory.

Software Is the New Engine

One of the biggest disruptors? Code.

Modern EVs are software-defined vehicles—built to run not only on batteries, but on firmware. Features like regenerative braking, adaptive cruise control, and autopilot are enabled and continuously refined via over-the-air (OTA) updates.

This means automakers now think more like tech companies. Ford has a dedicated software division, Tesla deploys OTA updates weekly, and legacy automakers are scrambling to hire developers just as quickly as engineers.

The rise of digital twins—virtual replicas of vehicles or manufacturing plants—also enables companies to simulate production, test new ideas, and improve efficiency without ever touching physical hardware.

Battery Manufacturing: The New Industrial Frontier

In EV manufacturing, the battery is king.

Battery cells are now the most expensive and strategically important component in an EV, often making up 30–40% of the total cost. This has driven the rise of gigafactories, with companies like Panasonic, CATL, and LG Chem building battery plants across the U.S. to meet growing demand.

This new focus has reshaped supply chains around raw materials—like lithium, cobalt, and nickel—and spurred a push for battery recycling and second-life applications to reduce environmental impact.

Companies like Redwood Materials are leading the charge in battery reuse and recycling, while innovators like QuantumScape are working on solid-state batteries that promise greater range and faster charging.

Enter the Era of Microfactories and Modular Design

Not all companies are going big. Some are going small and smart.

Startups like Arrival and Rivian are pioneering microfactory models, where smaller, modular production units allow localized, just-in-time manufacturing. These facilities are cheaper to set up and enable quicker pivots in design and production strategy.

Tesla’s use of the Giga Press, a massive aluminum casting machine, also signals a move toward modular manufacturing. Instead of assembling hundreds of parts to make the car’s chassis, the Giga Press casts it as a single piece—saving time, labor, and cost.

Sustainability: More Than Just an EV Badge

The green promise of EVs doesn’t stop at the tailpipe. Manufacturers are reimagining how factories themselves can be sustainable.

From Ford’s Rouge Electric Vehicle Center, which is powered by renewable energy, to Volkswagen’s commitment to carbon-neutral production by 2050, environmental responsibility is now baked into the manufacturing roadmap.

Additionally, materials like recycled aluminum, vegan leather, and plant-based composites are becoming more common, reducing overall environmental impact and meeting consumer demand for ethically produced goods.

STEM Careers Are Evolving—Fast

This manufacturing transformation has huge implications for STEM careers.

Electrical engineering, robotics, battery chemistry, embedded systems, cybersecurity, and AI are now core to auto manufacturing. Traditional mechanical roles are being reshaped by automation, and new jobs are emerging at the intersection of software, data science, and hardware design.

Programs like GM’s “Pathways” or Tesla’s START are already helping train students and upskill workers to meet this demand.

If you’re a STEM student, this is your call to get ready—because the next auto revolution runs through your classroom.

Final Thoughts: The Road Ahead

Electric vehicles are more than a greener ride—they’re a symbol of how rapidly the manufacturing world is evolving. EVs have forced a long-standing industry to rewrite its rules, adopt digital-first thinking, and embrace sustainability at scale.

As consumers, engineers, and future leaders, we’re witnessing a shift that’s about more than cars. It’s about the future of industry, the jobs we train for, and the technologies we build.

The question isn’t if EVs are changing the game—it’s what other industries will follow their lead.