Source: Tracking the State of U.S. EV Manufacturing
Earlier this month, in partnership with the BlueGreen Alliance, Atlas published a new report on the current state of electric vehicle (EV) manufacturing in the United States, sourcing data from EV Jobs Hub. The analysis reveals the early stages of a manufacturing renaissance in the United States. Through the end of September 2024, private companies have announced $208.8 billion in investments in U.S. EV and battery manufacturing, facilitating the creation of 240,000 jobs. More than three-quarters of these investments have gone to facilities that are either under construction or currently operational as of October 2024. Three key takeaways from the analysis are below.
First, the United States has seen significant and rapid growth in domestic EV manufacturing. Between 2000 and the end of September 2024, companies announced $208.8 billion in investments for EV and battery manufacturing, with battery production seeing the most investment at $122.6 billion. More than 50 percent of total investments have been announced since the signing of the Inflation Reduction Act in August 2022. These investments are slated to create an estimated 240,000 permanent jobs (i.e. not counting construction jobs). Many of these investments have already begun to materialize. A total of $49.6 billion has been announced for manufacturing facilities that are now operational, and $110.3 billion has been announced for facilities that are under construction.
Next, federal support has played a pivotal role in strengthening and expanding the domestic supply chain. The Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) have considerably influenced this influx of EV manufacturing investment. These laws have introduced new programs, tax incentives, expanded loan authorities, and grants to drive investment in domestic manufacturing. The U.S. government has awarded over $28 billion in grants, tax credits (counting only 48C), and loans for EV and battery manufacturing. The U.S. Department of Energy’s (DOE) Advanced Vehicle Technology Manufacturing loan program has awarded the most, offering $22.1 billion in loans for 17 facilities and that will support an estimated 31,000 jobs. Additionally, the Battery Materials Processing and Battery Manufacturing Recycling program, administered by the DOE, has distributed $4.3 billion in grants to support 35 facilities. The report also describes the funding outcomes of other federal programs and surfaces company statements from 10-K filings regarding IRA’s impact. In General Motors 10-K filing, for instance, the company stated “IRA benefits, including credits and lower material costs, are expected to materially affect net income in the future… We are also entitled to certain advanced manufacturing production credits under the IRA.”
Finally, while the domestic EV manufacturing industry has seen momentum, there will be labor and training challenges to come. To ensure workers and communities benefit from new facilities, there has been a strong focus on creating high-quality jobs that are safe and provide fair wages. The report highlights recent unionization efforts across U.S. EV manufacturing facilities and addresses the key role that apprenticeship programs will play in developing the skillsets of future manufacturing employees.
The analysis reveals the growing domestic EV supply chain to meet growing demand. Read the full report here, and access the data on EV Jobs Hub here.
