Demand for electric vehicles has slowed in the United States. Mississippi is already feeling its effects with a delay in production at the Nissan plant in Canton.

While President Donald Trump’s “One Big Beautiful Bill” ended EV tax incentives it also freed up cash for companies to invest in domestic production. If national demand continues to slow what will this mean for Mississippi?

Electric vehicle demand slowed in the United States before EV tax incentives ended due to higher up front costs, limited ranges and lack of charging infrastructure. Despite embracing EV manufacturing, Mississippi has one of the lowest rates of EV ownership in the country. EVs make up 0.1% of the market share in Mississippi compared to 1.2% nationally according to data from the US Department of Energy. 

What do you think the future of EVs in Mississippi looks like? Let us know what you think at marketplace@mississippitoday.org.

EV Manufacturing 

Auto manufacturing is a major employer in Mississippi, with 15,000 employees according to the Mississippi Development Authority. Over the past few years, there has been an influx of investment in EV manufacturing in the state: 

• Nissan announced a $500 million investment in its Canton plant to build EVs.
• Mullen Automotive, now Bollinger Innovations, began producing commercial EVs in Tunica. 
• Cummins Inc., Daimler Trucks & Buses and PACCAR planned to invest $1.9 billion in a new EV battery plant in Marshall County.

Nissan’s declining sales of EVs and other financial pressures led to the announcement that EV production would be pushed back at its Canton plant. Bollinger Innovations’s ongoing legal battles forced it to consolidate its operations and transfer ownership of a plant in Indiana. However, its Tunica plant continues to be operational.

In July, the Commercial Dispatch reported that Paccar was laying off an unspecified number of people at its Lowndes plant, which manufactures diesel engines. While the company announced that its net income was down from the previous year in Q2 2025, it exceeded industry expectations. There’s been no announcements that the company is stopping plans for a new facility in Lowndes and the battery plant in Marshall County. Paccar’s executives were optimistic about the second half of 2025 on a recent earnings call. 

One reason was changes to tax law in the new federal tax and spending bill that allows companies to deduct spending on domestic research and development, equipment and factories all at once instead of spread out over multiple years. The result, more cash for companies sooner.  

Other News: New Factories, New Investment, New Leadership

• Anduril Rocket Motor Systems, a California defense company, opened a new factory in Stone County.
• Mancuso Chemicals, a Canadian company is investing $5.52 million to build a logistics distribution center in Clarke County. The project is expected to create 17 jobs in the next five years.
• Mississippi Power announced a new CEO and chairman, Pedro Cherry. Mississippi Power provides service to 23 counties and is a subsidiary of the Southern Company.
• Howard Industries is investing $236 million to expand its Mississippi footprint.

Have economic or business news? Email Katherine Lin at marketplace@mississippitoday.org.