An analysis conducted by Environmental Defense Fund (EDF) has revealed that the United States is well on its way to meeting the demand for electric vehicle (EV) batteries. According to the analysis, enough battery production capacity has already been announced to supply all the EVs expected to be sold in 2030.
The study found that more than 1,000 gigawatt hours per year of U.S. EV battery production capacity has been announced to come online by 2028. This amount is equivalent to what is needed to power 10 million electric cars, surpassing the estimated demand projected by the U.S. Environmental Protection Agency (EPA) for 2030.
What is particularly encouraging is that all of the announced battery manufacturing capacity is domestic, indicating that the U.S. is poised to supply its own battery needs. States with the most announced battery production capacity include Michigan, Georgia, Tennessee, Kentucky, and Indiana.
According to Ellen Robo, EDF's Manager of Transportation and Clean Air Policy, "This analysis adds to the large body of evidence already supporting the unambiguous feasibility of protective EPA vehicle emission standards for both light-and-medium-duty and heavy-duty vehicles."
The analysis also evaluated battery demand that could arise if manufacturers choose to sell battery electric vehicles to meet both EPA's Multi-Pollutant Emission Standards for Light and Medium-Duty Vehicles and EPA's Phase 3 Greenhouse Gas Emissions Standards for Heavy-Duty. So far, 45 battery manufacturing facilities have been announced, with an average production capacity of 23 gigawatt hours per year.
Interestingly, the average time between announcement and expected start of production for the battery facilities analyzed is 2.7 years. This suggests that there may be additional facilities coming online after 2026 that have not yet been announced. The short timeframe between demand and production capacity allows manufacturers to respond quickly to any additional demand for batteries.
While passenger vehicles are expected to account for roughly 90% of electric vehicle battery demand, there is also a growing demand for electric buses and trucks. In fact, heavy-duty, commercial vehicle manufacturers have already started announcing battery production facilities, and there is potential for significant sharing of batteries and components across light and heavy-duty electric vehicles.
The announced battery production capacity is partly driven by tax credits and incentives in the Inflation Reduction Act, which provide strong support for manufacturers to build batteries in the U.S. A previous analysis by EDF and WSP highlighted the significant impact of the Inflation Reduction Act in accelerating U.S. investments in electric vehicle manufacturing and job growth. Since the passage of the IRA, over $165 billion in announced investments have been made, supporting 179,000 direct jobs and expected to create more than 800,000 additional jobs in the broader economy.
This analysis by EDF demonstrates that the United States is well-positioned to meet the growing demand for electric vehicle batteries. With a significant amount of battery production capacity already announced and the potential for even more facilities to come online in the future, the country is on track to support the transition to electric transportation.
Environmental Defense Fund (EDF) is a leading international nonprofit organization dedicated to finding solutions to environmental problems. Their scientists, economists, attorneys, and policy experts work across 28 countries to turn solutions into action.
Source: Environmental Defense Fund.
For additional details, please follow this link: https://www.edf.org/media/analysis-finds-us-electric-vehicle-battery-manufacturing-track-meet-demand
