The U.S. has witnessed a significant rise in domestic battery manufacturing for electric vehicles, transforming from just four factories in 2019 to about 34 today. While not the initial catalyst, the Inflation Reduction Act (IRA) has significantly accelerated this trend, leading to heavy investments by automakers. The need to control the battery supply chain is critical, especially in light of past challenges like the chip shortage. Despite uncertainties surrounding IRA, investments in clean energy continue, highlighting the strategic necessity of reducing reliance on Chinese imports.
Because whether Trump wants to back clean energy or not, the fact remains that the U.S. needs to have more control over its battery supply chain, rather than ceding control to China.
Currently, the U.S. hosts about 34 battery factories planned, under construction, or operational, signifying a substantial shift towards domestic production.
The IRA's provisions have spurred a significant influx of investments into onshoring EV battery production, reflecting a strategic pivot to enhance autonomous supply chains.
Former President Biden's Inflation Reduction Act played a crucial role in accelerating the battery factory trend, despite the uncertain fate of the legislation.
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