Charging Ahead: U.S. EV Industry’s Explosive Growth

The electric vehicle (EV) revolution is well underway, with manufacturers and consumers alike embracing the shift toward cleaner and more sustainable transportation. However, as the demand for EVs surges, the industry faces a significant challenge: ensuring a secure and sustainable supply of critical minerals essential for battery production. This article explores the dynamic landscape of long-term offtake agreements and investments in the critical minerals value chain by EV cell manufacturers and original equipment manufacturers (OEMs).
Manufacturers have seized the opportunity to accelerate the transition to sustainable transportation, announcing an impressive $165 billion in concrete investments across U.S. EV and EV battery manufacturing facilities. These figures have been drastically catalyzed by federal policies, with an astonishing 56 percent of the total announced EV investments occurring within the past year following the passage of the Innovative Renewable Act (IRA). Moreover, a remarkable 80 percent of these investments have materialized in the 21 months subsequent to the Bipartisan Infrastructure Law’s enactment.

Notably, these investments have manifested not just in monetary terms but in job creation as well. The report highlights the creation of 179,300 new U.S. EV-related jobs within the past 8 years. Federal interventions targeting the onshoring of EV manufacturing supply chains have played an instrumental role in propelling these job announcements. An analysis of the data reveals a striking trend, with 47 percent of new EV job announcements since 2015 stemming from the last 12 months following the IRA’s enactment, and an impressive 72 percent attributed to the 21 months since the Bipartisan Infrastructure Law’s passage.

Furthermore, the report underscores the profound impact these investments have had on various states. A mere ten states have contributed a staggering 88 percent of announced EV manufacturing investments. Leading the charge, Georgia boasts over $31 billion in investments, paving the way for an impressive 36,600 jobs. Michigan and Tennessee follow closely with $19 billion and $18 billion in investments, ushering in a combined 20,000 new jobs across both states.

With an eye on production capacity, the report projects that by 2026, U.S. EV manufacturing facilities will have the potential to roll out approximately 4.7 million new passenger vehicles annually, accounting for an impressive 36 percent of new vehicles sold in 2022. The following year, U.S. battery manufacturing facilities are poised to supply batteries to meet the demands of 12.2 million new passenger vehicles, representing an astounding 95 percent of new vehicles sold in 2022.

The report concludes by suggesting that the robust investments, job creation, and production capacity expansion witnessed thus far are only the tip of the iceberg. Global EV and battery manufacturers have expressed their commitment to substantial investments over the next decade to support the worldwide EV transition. Presently, the United States stands as a magnet for EV ecosphere manufacturing facilities, a testament to the allure created by the Innovative Renewable Act.

As the EV industry accelerates, this report firmly establishes the United States as a key player in driving the green revolution forward, with unparalleled investments, job creation, and production capacity that will indubitably redefine the automotive landscape.

Source: U.S. Electric Vehicle Manufacturing Investments and Jobs | EDF

Graph showing the projected total EV manufacturing capacity from 2020 to 2026. The capacity starts at 43,000 vehicles in 2020, grows to 641,600 in 2022, 3,196,800 in 2024, 4,275,200 in 2025, and reaches 4,664,800 in 2026.
Source: U.S. Electric Vehicle Manufacturing Investments and Jobs | EDF
Related news

P3 Charging Index reveals Asia’s fastest-charging EVs

The P3 Group has released its P3 Charging Index for Asia at the 37th International Electric…

read more
EV Charging
Asia
Published by: Editorial board | June 19, 2024

UAE accelerates EV adoption to meet 2050 carbon neutrality goals

The UAE is intensifying its efforts to transition to e-Mobility as part of its ambitious plan…

read more
Electric Vehicles
Asia
Published by: Editorial board | June 18, 2024

Corporate cars falling behind in Europe’s Electric Vehicle adoption

A recent briefing by Transport & Environment (T&E) has highlighted a significant issue in Europe’s corporate…

read more
Electric Vehicles
Europe
Published by: Editorial board | June 17, 2024

EU introduces provisional duties on subsidised EV imports from China

In a decisive move aimed at ensuring fair competition and protecting its automotive industry, the European…

read more
Electric Vehicles
Americas
Published by: Editorial board | June 13, 2024