The Biden Administration’s Inflation Reduction Act includes incentives for automakers to source their batteries in the US. This is in an effort to reduce reliance on China and decrease logistics and material costs. As a result, many automakers and battery suppliers have announced plans to build battery plants, dubbed “gigafactories”, in the US. These plans include FREYR and Hyundai building separate plants in Georgia, Panasonic building batteries for Tesla in Kansas, Stellantis and Samsung SDI investing in Indiana, LG Energy Solution expanding a facility in Michigan, and GM also increasing its production in Michigan. These projects are expected to bring significant economic development and job creation in the region. According to the Center for Automotive Research, automakers announced plans to invest some $22 billion in battery plants in the US in 2022.
The Southeast region of the US is becoming a hub for battery production and some are calling it the “battery belt.” States and regions are competing to lure battery-makers with generous tax breaks and subsidies. This is expected to create more than 150,000 direct jobs, as per Atlas Public Policy. The movement of battery production to the US and Europe not only reduces reliance on China but also helps with logistics and material costs. With all these investments, it is expected that the US will play a major role in the battery production and electric vehicle industry in the near future.