EV supply chain investments top $135 billion in US since IRA
Over $135 billion has been invested into the US EV supply chain with the support of the Inflation Reduction Act, Kallanish learns from data released by the US Department of Energy.
This growth follows the introduction of the 2021 Bipartisan Infrastructure Law and the IRA in 2022, which focus on transportation investments and EV incentives. According to the DOE’s Clean Energy Future resource, EV assembly and manufacturing sites are on the rise in the United States, bolstered by more than $35 billion in EV component and assembly investments.
Meanwhile, over $100 billion has been invested in US battery manufacturing and the supply chain. The government says battery cell factories could supply 10 million new EVs each year, with 77 cell factories established in the US following the Inflation Reduction Act.
With the Biden administration aiming to achieve a net-zero emissions economy by 2050, more importance is being placed on its industrial decarbonisation and clean electricity goals.
In the DOE’s Industrial Decarbonization Liftoff Report, released Monday, US secretary of energy Jennifer Granholm noted that “this administration is committed to engaging with our private sector partners to accelerate the commercialisation and deployment of key technologies needed to achieve the President’s ambitious climate and decarbonisation goals.”
Despite the recent investment commitments, the DOE warned that US industrial players could still fall behind on net-zero targets. The decarbonisation report also said that widescale carbon reductions could require up to $1,100 billion in capital expenditure, highlighting the uphill battle that remains.
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