U.S. Sees surge in EV investments following inflation reduction act

The United States has witnessed a substantial influx of investment in the electric vehicle (EV) sector, buoyed by recent federal policies. A new report released by the EDF has shed light on the dramatic expansion in both the manufacturing landscape and job creation within the EV ecosystem over the past nine years, with a marked acceleration following the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL).
Announced EV Ecosystem Investment title=
Source: U.S. EV manufacturing investments and jobs | EDF

According to the report, the U.S. has seen $188 billion in announced investments in EV and EV battery manufacturing facilities over the last nine years. Notably, a staggering 61% of these investments have been announced in the 18 months since the enactment of the IRA, with 82% occurring in the 27 months post the passage of the BIL. This influx of investment highlights the significant impact federal policies have had on boosting the EV sector.

The investment spree has translated into a robust job market, with manufacturers announcing the creation and retention of 194,500 U.S. EV-related jobs since 2015. The report underscores the role of federal investments and incentives in onshoring the EV manufacturing supply chain, revealing that 51% of all EV job announcements have been made in the last 18 months following the IRA’s passage. Furthermore, the announced investments are projected to generate up to 876,000 additional jobs in indirect and secondary employment, illustrating the broader economic benefits of fostering the EV sector.

Geographically, the investment has been concentrated, with ten states accounting for 84% of the total announced EV manufacturing investments. Georgia leads with over $31 billion in investments, supporting 38,700 jobs, followed by Michigan and North Carolina, which have seen over $20 billion and $19 billion in investments, respectively.

Looking ahead, the U.S. EV manufacturing capacity is on track to reach impressive heights. By 2027, it is expected that U.S. EV manufacturing facilities will have the capability to produce approximately 5.5 million new electric vehicles annually. This figure represents 35% of new passenger cars, light-duty trucks, and SUVs sold in the U.S. in 2023. Additionally, the battery manufacturing capacity is poised to supply 1,099 Gigawatt hours of EV batteries, sufficient for 12.3 million new electric vehicles each year.

The report also calls for further policy actions to ensure that the burgeoning investments translate into high-quality, community-sustaining jobs. With the U.S. poised for continued growth in the EV sector, the report suggests that the IRA has positioned the country as an attractive market for global EV and battery manufacturers, looking to invest in the transition to electric mobility.

This surge in investment and job creation in the EV sector signifies a pivotal moment for the U.S. economy and its automotive industry, highlighting the transformative power of targeted federal policies in driving sustainable economic growth and technological innovation.

Source: U.S. EV manufacturing investments and jobs | EDF

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