EV production in the U.S. is alive — and it represents a supply chain opportunity for German technology leaders.
The U.S. automotive industry is responding to the lessons of recent years with a clear strategic decision: structural dependencies within the supply chain must be reduced. The primary instrument for achieving this is a deliberate shift toward U.S.-based manufacturing and U.S.-domiciled suppliers. This so-called onshoring is not a short-term reaction but a trend that has been solidifying for several years and is now receiving additional momentum from the structural transformation underway in electric mobility.
The U.S. EV market is growing — more broadly and more steadily than widely perceived
Electrified vehicles have by now achieved considerable weight in the U.S. market. In the second quarter of 2026, electrified powertrains accounted for 26.9 percent of all new-vehicle purchases, split between pure battery electric vehicles (BEV) at 7.4 percent and hybrids including PHEVs at 18.1 percent market share. The transition is taking place — albeit at a different pace and with a broader powertrain mix than originally projected.
For suppliers, this differentiation is material: the market is not moving exclusively toward pure battery electric vehicles but is generating demand for specialized components across the full electrification spectrum.
Battery gigafactories are seeking qualified suppliers
The industrial infrastructure underpinning this transition is already taking shape in the United States. Seven new battery gigafactories are in the critical commissioning and production ramp-up phase in 2025 and 2026. Each of these facilities requires qualified partners along the value chain — specifically in the following areas:
- Thermal management
- Power electronics
- Precision components
- Hydraulics
These are disciplines in which German suppliers are recognized internationally as technology leaders. The decisive question is not one of competence but of availability: who will be sufficiently anchored in the U.S. market — with the right qualifications, local presence, and established relationships — before the critical decisions are made?
The time factor: OEM qualification processes take up to two years
OEM qualification processes in the U.S. automotive industry are demanding. Based on experience, they extend over a period of up to 24 months. This has direct strategic implications: a supplier that initiates the qualification process today can be an approved vendor by 2027. One that waits until decisions have already been made will find itself outside the relevant supply chains.
The supply chain decisions taken over the next 18 months are likely to have an impact well beyond the immediate demand cycle — shaping industry structures for the next 15 years.
Strategic diversification for suppliers under pressure
German automotive suppliers face significant challenges in their European home market. Against this backdrop, the stable and growing U.S. EV market offers a concrete avenue for geographic and structural diversification.
The technological foundation is in place. What is required now is early market positioning — with local presence, solid OEM relationships, and a clear understanding of American qualification and procurement processes.