Summary
- The United States has attracted the most investments in electric vehicle and battery manufacturing, with $312 billion committed since President Biden took office
- Over half of the planned investments in the US, $223 billion, are allocated for specific facilities or initiatives, with $133 billion for battery manufacturing
- The US has surpassed China as the top destination for EV investments, with 484 active or planned facilities across 40 states
- Federal tax credits and policies, such as the Inflation Reduction Act, are driving private investment in cleaner vehicle technologies
- Long-term regulatory certainty is needed to ensure that announced investments lead to actual domestic projects and secure the US as a global leader in the EV transition
Article
The United States has become the top destination for investments in electric vehicle (EV) and battery manufacturing, surpassing China and other countries globally. Since President Biden took office, investments in this sector have skyrocketed to $312 billion, with $223 billion allocated to specific facilities or initiatives. The majority of this investment is directed towards battery manufacturing and recycling, followed by EV manufacturing and components further down the supply chain. The United States is now attracting nearly a quarter of all announced global EV investments, with 484 active or planned facilities across 40 states benefiting from EV investment.
The significant growth in industry investments has been credited to the Inflation Reduction Act, which provides favorable tax credits for manufacturing and consumer incentives. Federal tax credits, grants, and policies are driving private investments in EV manufacturing and technology. The enactment of the Inflation Reduction Act and strong national clean vehicle standards from the U.S. Environmental Protection Agency have encouraged automakers to invest in cleaner, more efficient technologies. Consumer tax credits have also supported a steadily growing market, with 125,000 consumers purchasing new EVs and 25,000 purchasing used EVs since the beginning of the year.
The Inflation Reduction Act has also introduced programs to boost private investments, including $1.7 billion announced by President Biden to help retrofit factories to manufacture up to 11 million electric vehicles annually. This marks a significant global shift as the United States reclaims its position as a leader in lithium-ion battery production. Ensuring that these announced investments result in actual domestic projects will require long-term regulatory certainty through clean car and clean truck standards, as well as successful implementation of the investments under the Bipartisan Infrastructure Law and state programs.
The creation of stable markets through tax credits and standards will support more investment and consumer uptake in the EV sector. It is crucial for the United States to maintain its leadership in the EV transition by building batteries more sustainably through domestic investments in recycling and reducing waste. There is a historic opportunity to attract new investments and jobs by creating a circular and sustainable supply chain for EV batteries. By continuing to implement current commitments and providing regulatory stability, the United States can solidify its position as a global leader in innovative and cleaner electric vehicle manufacturing.
States and counties across the United States are already seeing real investments being made in the EV sector, boosting local economies and creating new job opportunities. Despite misinformation from the oil industry lobby trying to roll back policies supporting clean technologies, most state and federal officials recognize the importance of betting on the future rather than the past. By ensuring regulatory stability and upholding clean vehicle standards, the United States can attract more investments and create a cleaner, more affordable way of moving people and goods. The country is poised to become a global leader in innovative, cost-effective electric vehicle manufacturing, which can significantly benefit the economy and communities across the nation.
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