By the end of the decade, automakers and suppliers are going to build a lot of battery factories in the US.
More than $38 billion is being invested by car companies and suppliers to boost battery production in the U.S. Ford finalized a deal to bring its battery production to Tennessee and Kentucky, and Kansas and North Carolina each announced the largest economic development projects in their histories.
The Inflation Reduction Act, which includes tax credits to encourage domestic production of electric vehicles and batteries, offers manufacturers $30 billion in credits to speed the production of batteries and minerals processing
The multiyear projects already announced won't begin producing batteries for EV until middecade, but shortening the supply chain will help manufacturers control costs and reduce dependence on foreign sources Building a domestic battery industry allows the industry to experiment with different battery chemistries.
The feedback loop allows you to innovate and reengineer so that you always have a constant advantage and are meeting the market.
You have all the engineering, design, marketing and sales figured out, but then you don't have enough batteries to make and sell those vehicles. If you fall behind you will struggle with trying to capture the market.
Some of the major projects are underway.
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