According to foreign media reports, German parts supplier Schaeffler said on February 26 that the company will invest about $230 million to build an electric vehicle parts factory in Ohio.

The new plant, which will produce electric axles and other components for light - and midsize electric vehicles, will be located in Dover, Ohio, about 80 miles south of Cleveland. Construction is scheduled to begin in the middle of this year, with the 130,000-square-foot first phase expected to be completed in the third quarter of 2025.

Schaeffler's investment comes at a time when auto suppliers are making major changes to their production schedules to accommodate increased production of electric vehicles, as well as automakers' desire to source more electric vehicle parts in the United States to take advantage of federal tax credits under the Inflation Reduction Act.

Photo credit: Schaeffler

"The new facility will play a key role in shaping our future in the Americas," Marc McGrath, Schaeffler's chief executive of the Americas, said in a statement.

The Dover plant will be Schaeffler's 16th in the Americas. Schaeffler said it expects the plant to employ about 450 people by 2032 as it expands its Ohio operations.

Schaeffler said in a statement that it is reviewing whether the new plant is a "potential benefit" under the Inflation Reduction Act, which encourages companies to make electric vehicle assembly and parts in North America.

Schaeffler said the company will receive grants and tax breaks from Ohio and create 650 jobs in the state. Schaeffler plans to create other new jobs at its plant near Wooster, Ohio.

Schaeffler recently completed a 90,000-square-foot expansion of its Worcester plant, which produces electric motors and powertrain components for electric vehicles. As part of its partnership with Ohio State University, the company also plans to open a battery research and development center in the state in 2025.

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