U.S. Automakers Invest in American-Made EV Batteries

U.S. automakers are investing billions of dollars in establishing an EV battery supply chain in North America following the passage of the Inflation Reduction Act. The legislation offers incentives for American-made batteries and penalizes companies that source batteries abroad. It has sparked a wave of new ventures in the U.S. that would mine raw materials and manufacture battery cells. Batteries are the most expensive component in an electric vehicle. The raw materials are mined in countries such as Australia, China, Congo, and Indonesia. The assembly is primarily done by Chinese companies. American-made EV batteries would make producing electric vehicles more cost-effective and efficient for U.S. automakers. In October, the Biden administration awarded about 20 companies $2.8 billion to expand domestic manufacturing of batteries for electric vehicles and the electrical grid.