As automakers around the world race to meet overwhelming demand for fully electric, zero-emission vehicles, a new “battery belt” is emerging in the United States. With limited production capacity, planned investments to ensure the United States has an adequate supply of critical EV battery components are in excess of $40 billion.
Automakers and government leaders are setting ambitious goals for the future of electric vehicles, aiming for a cleaner and more sustainable future. President Biden has set a goal for his 50% of total car sales to be electric by 2030.
Since then, the administration has passed several landmark investments to support the transition and alleviate some of the bottlenecks that are holding back the US’s higher EV production capacity.
The bipartisan infrastructure bill signed in November 2021 includes $89.9 billion in funding to modernize public transportation and another $7.5 billion investment to build EV charging networks across the United States. It contains.
One of the biggest initial challenges automakers faced was access to semiconductors. The CHIPS and Science Act was passed to address this, providing for his $52.7 billion investment in establishing his chain of reliable domestic supply.
And the recently passed Inflation Reduction Act, signed into law on August 16, will invest $369 billion to build a clean and sustainable economy, including tax credits for EV buyers. I’m here.
Meanwhile, U.S. automakers such as General Motors have plans to offer “EVs for everyone,” trying to mirror Tesla’s success with delivering a record 343,000 EVs in the third quarter. increase.
With nearly every automaker aiming for an all-electric future, there will be a need for a large number of batteries. New climate legislation is stimulating investment in US EV battery production, up 700% from early 2021.
A new Dallas Federal Reserve research report highlights that automakers are investing heavily in the U.S. to expand production of EV batteries and cater to a surplus of people looking to switch. I’m here.
EV battery investment in the US tops $40 billion
US EV battery capacity additions in the United States were negligible compared to the last few years, according to the report. Federal agencies point out:
Until recently, when the pace of new announcements accelerated, US capacity additions were sporadic. Between 2018 and 2020, six new properties of his have been announced worth more than $5 billion.
As previously mentioned, the new US climate initiative has significantly increased investment in EV batteries.
More than 15 new facilities or expansions have been unveiled in the United States since early 2021, reflecting potential investments of at least $40 billion.
And this is just the beginning. The production capacity of these facilities far surpasses their predecessors. All but one of the 15 new plants exceed capacity by 10 GWh compared to previously announced facilities, and in many cases produce less than 1 GWh.
With new EV tax credit requirements (batteries must be sourced and final assembled in North America or in a free trade partner), automakers are scrambling to ensure their EV models meet the standards.
With more than $40 billion already invested in EVs, EVs are reviving rusty belts with a new so-called “battery belt.” New funding will create jobs while putting America on the road to sustainability. So far, these historic investments have created over 642,000 manufacturing jobs in the United States beyond 2021.
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