Automakers have previously announced plans to invest in the US electric vehicle industry worth $154 billion in total. These significant investments are expected to generate 188,000 job opportunities owing to President Biden’s support in the wider electrification push.
Now, BlueGreen Alliance and Atlas Public Policy have developed an interactive mapping tool to present all the investments in domestic EV and battery production.
Investment distribution
Most of the announced investments went to the emerging “battery belt” in the Midwest and South. It is also developing on the West Coast due to Tesla’s presence and Silicon Valley.
The tool revealed that 32% of the 319 total EV facilities are deployed in disadvantaged areas. It is a remarkable strategy as it can boost certain local economies. Moreover, it offers low-cost labor for EV companies.
Meanwhile, 25% of the existing EV facilities are unionized. That rate is notably higher than the country’s 10% average and the automotive industry’s 16% average.
“…new manufacturing jobs in the domestic EV supply chain must be community-sustaining jobs with competitive wages and benefits, in safe and diverse workplaces, and where workers have the free and fair choice to join a union.”
BlueGreen Alliance
The US Government implemented policies to support the shift to EVs
The Inflation Reduction Act substantially boosted EV investments in the US since its implementation in 2022. According to Electrek, the US Government extended the IRA’s federal tax credit until the following ten years.
However, the policy requires automakers to produce their models and components locally to benefit from the said incentives.
Apart from the IRA, the e Bipartisan Infrastructure Law (BIL) also accelerated the country’s EV shift with significant funding for the necessary infrastructures and battery raw materials.
Considering these supportive policies, automakers race to propose their EV projects for the US industry.
See Also:
- Local power battery production continues to expand, driven by a clause in IRA
- Tesla battery suppliers enjoy shares growth amidst IRA tax credits
- The IRA significantly boosts the EV supply chain in the US
- The IRA bill is expected to boost the US EV market by 20%
- US approves first 35 State plans for EV charging infrastructure
The US Government’s significant support for the shift to electric vehicles has undoubtedly been effective in expanding the industry. The major investments from the EV players enabled the US to solidify its economy and gradually reduce its reliance on China.
