EV Battery Manufacturing Gains Traction in the US

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【Summary】The Inflation Reduction Act of 2022 promotes EV battery manufacturing in America, offering tax incentives for qualified companies and encouraging the recycling of batteries. The US aims to reduce its reliance on foreign mining practices and achieve a net-zero economy by 2050. EV batteries recycled in the US and companies using US-recycled batteries can receive up to 10 years of tax credits.

FutureCar Staff Aug 14, 2023 7:41 AM PT

EV Battery Manufacturing Gains Traction in the US

The Inflation Reduction Act of 2022, hailed as the largest investment in climate and energy in American history, is expected to have a ripple effect on various sectors related to electric vehicles (EVs).

With the aim of achieving a net-zero economy by 2050, the IRA allocates an additional $40 billion of loan authority for eligible projects under section 1703 of the Energy Policy Act of 2005. To gain more control over the EV supply chain, the IRA's "Advanced Manufacturing Production Credit" clause offers tax incentives for qualified companies.

In a statement to CBS News, Mike O'Kronley, CEO of battery material manufacturer Ascend Elements, highlighted the importance of recycling EV batteries and extracting valuable metals from them to be reused in the battery supply chain. This approach can help reduce the need for additional mining.

Given this focus on sustainability, it comes as no surprise that the U.S. is investing in decreasing its reliance on foreign mining practices for EV battery production. As part of this effort, all EV batteries recycled in the U.S. and EV manufacturing companies that choose to use U.S.-recycled electric batteries are eligible for up to 10 years' worth of tax credits.