Inflation Reduction Act Paying Off as Battery Makers Invest Billions in U.S. Factories
Sales of battery-electric vehicles have grown by more than 750% since 2019, and the majority of those EVs are now produced in the U.S. But a sizable share of the batteries used for those vehicles are being imported, largely from China, the world’s largest producer of lithium-ion technology. Ford is just one of the automakers in the U.S. finding ways to ramp up EV battery production. That’s something expected to change dramatically over the coming decade. Domestic production of EV batteries could grow by as much as 2,000% by 2030, according to a forecast by the U.S. Department of Energy. Last year alone, industry data shows that $73 billion in projects were announced for the U.S., many of them following the August passage of the Inflation Reduction Act which ties EV incentives to domestic production of their batteries, along with local sourcing of the critical minerals they require. “So far, 17 new EV battery facilities have been announced, aided by the latest round of Federal in...