Electric Bus Manufacturing Gets a Homegrown Boost

Regional investment is helping electric bus manufacturing shift from aspiration to scaled production across the US

26 Dec 2025

Regional money is starting to play a bigger role in how the US electric bus market grows, and the shift is quietly reshaping the industry. What once felt like a policy-driven vision is now taking firmer shape on factory floors.

In December 2025, The O.H.I.O. Fund invested in electric bus manufacturer Endera, with a clear goal: expand domestic production and keep pace with rising demand from transit agencies and fleet operators. The move stands apart from Endera’s earlier $49 million funding round announced in February 2025, which drew a mix of strategic and institutional backers. This time, the emphasis was local capital stepping in to scale local manufacturing.

That distinction matters. Regional investment groups are increasingly backing companies that already have vehicles on the road and manufacturing operations in place. The focus is less on experimental technology and more on execution. For fleet operators juggling emissions goals with real budgets and delivery schedules, that shift could translate into buses built closer to home, shorter lead times, and stronger service support.

Endera serves public transit agencies, school districts, and shuttle operators, all segments well-suited to electrification thanks to predictable routes and centralized depots. While incentives still help push demand, the December investment centers on something more practical: manufacturing capacity. According to the company, the capital will support factory expansion, stronger supplier relationships, and higher production output in the US.

Across the industry, there is growing agreement that electric bus technology itself is no longer the bottleneck. Performance has improved, operating economics look increasingly attractive, and emissions benefits are well established. What continues to slow adoption is production capacity and the long waits that come with it. Money directed at factories, not just vehicle design, is becoming a key accelerator.

For The O.H.I.O. Fund, the investment blends climate goals with regional economic development. Supporting a domestic manufacturer ties decarbonization to jobs and industrial growth, without betting on unproven platforms.

The ripple effects could extend beyond a single company. More production capacity can ease backlogs, sharpen competition, and reduce reliance on overseas suppliers. In a sector still vulnerable to supply chain shocks, that resilience is gaining value.

Taken together, deals like this suggest the US electric bus market is entering a more grounded phase. Electrification is no longer just a future target. It is becoming an operational priority, built one factory expansion at a time.