As the United States celebrated the second anniversary of the passage of the Inflation Reduction Act (IRA), the U.S. markets for electric vehicle and battery manufacturing reached new heights.
In fact, a new report by Environmental Defense Fund and WSP USA shows that electric vehicle (EV) manufacturing investments over the last nine years has now reached $199 billion, and 63% of that came after passage of the IRA.
"Thanks largely to supportive federal policies like the Inflation Reduction Act, America is still seeing strong, steady growth in electric vehicle and battery manufacturing,” says Ellen Robo, manager of transportation and clean air policy at Environmental Defense Fund (EDF). “Americans are benefitting from hundreds of thousands of new U.S. jobs building the zero-emitting cars of the future – cars that will give buyers more choices at the dealership, save families money on fuel and maintenance, give us all cleaner and healthier air, and help protect us from climate change.”
Key takeaways:
- Manufacturers have announced 201,900 U.S. EV-related jobs linked to that investment. EV and battery manufacturing could also generate up to 931,000 additional jobs in the broader economy.
- EV and EV battery manufacturing facilities has grown another $11 billion since the report was last updated in March and has now reached $199 billion.
- Federal policies have dramatically expanded and accelerated these investments. 63% of announced EV investments occurred in the last 24 months since passage of the IRA and 83 % occurred in the last 33 months since passage of the Bipartisan Infrastructure Law. Investment has also been spurred by more than $29 billion in federal, state and local incentives.
- Manufacturers have now announced 201,900 U.S. EV-related jobs. Federal investments and incentives that are specifically designed to onshore the EV manufacturing supply chain have substantially expanded and accelerated those new job announcements.
- In 2027, U.S. EV manufacturing facilities will be capable of producing approximately 5.8 million new electric vehicles annually. That’s the equivalent of 36% of all vehicles sold in the United States in 2023.
- In 2028, U.S. battery manufacturing facilities will be capable of producing 1,164 gigawatt hours of EV batteries. That’s enough to supply batteries for 13.2 million new electric passenger vehicles each year.
- Georgia and Michigan are still the leading states in the United States for both EV investments and new jobs, followed by North Carolina (for investments) and Tennessee (for jobs).
- 10 states now have more than $10 billion in investments and/or more than 10,000 new EV-related jobs.
- Massive investments in new EV plants are nearing completion.
- EV manufacturing hubs bring new suppliers and jobs to American communities.
- Investments in EV trucks and buses are rising.
- EV manufacturing breathes new life into existing plants.
- Facilities are building the next generation of battery technology.
