Investing in the US battery and Electric Vehicle (EV) manufacturing industry is crucial for establishing a robust supply chain and supporting job growth. Recent investments have been driven by a combination of forward-looking policies, incentives for a domestic battery industry, automaker recognition of the electric future, and growing consumer demand for EVs.
While the rest of the world is committing to zero-emission goals and embracing the EV economy, the Trump Administration and the 119th Congress are dismantling industry support. Congress recently revoked states’ authority to enforce standards that promote cleaner diesel trucks and electric vehicles, a right states have used for over 50 years to reduce vehicle pollution. Additionally, efforts are underway to roll back EV manufacturing and consumer incentives, undo federal vehicle fuel economy and emission standards, and impose excessive fees on EVs.
These actions are not only setbacks for EV deployment in the US but also hinder the growth of the country’s EV battery manufacturing supply chain.
Investments in the US EV supply chain are essential for creating jobs, fostering technology leadership, and reducing costs. The Biden Administration and the 117th Congress supported a flurry of supply chain investments following the passage of the Bipartisan Infrastructure Law and the Inflation Reduction Act. Approximately $198 billion has been invested in US battery and EV manufacturing over the past decade, with the potential to create 195,000 new jobs. These investments have been crucial in building a reliable battery supply chain in the US, with states like Georgia, Michigan, North Carolina, Tennessee, and Nevada seeing significant investment.
The US is making investments across the supply chain, from lithium extraction to battery production and EV manufacturing. By 2030, the US is projected to be a top lithium producer, and there are plans for electrode and cell manufacturing facilities as well as EV manufacturing capacity expansion. These investments are not only creating jobs but also stimulating local economies, particularly in disadvantaged communities.
However, the Trump Administration and Congress are threatening these investments by slashing incentives such as the New Clean Vehicle tax credit, the Alternative Fuel Vehicle Refueling Property Credit, and the Advanced Manufacturing tax credit. Repealing these incentives could lead to significant job losses and hinder the growth of the US manufacturing base.
The proposed elimination of the New Clean Vehicle tax credit, tied to domestic mineral sourcing and battery production, poses a threat to the EV industry. Long-term industry-wide vehicle pollution standards are also at risk, jeopardizing automakers’ R&D investments and the availability of clean vehicles.
To support the US battery and EV industry, it is crucial to maintain a policy environment of certainty and continue investing in US manufacturing, amplifying demand signals, and fostering partnerships with producing countries. Slashing incentives at this critical moment is a major setback for the US battery manufacturing industry and could hinder its competitiveness in the global market.
It is important for individuals to voice their support for EV tax credits to ensure the future of EV manufacturing in the United States. Contacting Senators and advocating for these incentives is essential for the growth of the US EV industry and the creation of a resilient and competitive battery supply chain.
