Alabama's Automobile Industry

Transportation equipment is Alabama's No. 1 export, shipping to over 70 nations annually.

Alabama is ranked in the Top 5 for automotive production in the nation. This achievement underscores Alabama's investment in the automotive industry and puts a spotlight on its growing production of electric vehicles.

Alabama's expanding network of automotive suppliers and robust infrastructure create an ideal ecosystem for manufacturers. More than 200 Tier 1 and Tier 2 suppliers have already established operations in the state, reinforcing Alabama's reputation as a premier automotive hub.

Building on this foundation, Alabama is preparing to welcome a first-of-its-kind graphite processing plant—an investment that will strengthen the state's position in the electric vehicle supply chain by providing direct access to raw battery materials.

Complementing these advancements, global trade has never been more accessible thanks to the AutoMobile International Terminal, which offers storage for 7,000 vehicles and the capacity to move 150,000 units annually. This cost-effective port solution delivers unmatched maritime and rail connectivity for vehicle imports and exports, ensuring Alabama remains competitive in a rapidly evolving automotive market.

Electric vehicle production is accelerating across Alabama, positioning the state as a national leader in EV manufacturing and innovation. Mercedes-Benz has completed a state-of-the-art battery plant in Bibb County to support its "Electric First Strategy," a $1 billion investment that also includes upgrades to its Vance assembly facility. This initiative enables in-state production of luxury electric SUVs like the EQS and EQE.

Hyundai also committed $300 million toward EV production at its Montgomery plant, including the all-electric Genesis GV70. Hyundai Mobis, a key supplier, is investing an additional $205 million in a new battery module plant in Montgomery to support Hyundai's EV operations.

Beyond these OEMs, Alabama's EV ecosystem is expanding rapidly. The Alabama Mobility and Power (AMP) Center—a partnership between The University of Alabama, Alabama Power, and Mercedes-Benz—has emerged as a world-class research and development hub. The AMP Center is advancing battery innovation, charging infrastructure, and workforce development, with dozens of consortium members collaborating on industry-driven solutions.

To learn more about locating and growing your automotive company in Alabama, please contact: