White House publishes details on EV plan

White House publishes details on EV plan

The briefing note asserts that the President’s economic plans have generated an American, EV manufacturing boom.

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The briefing document notes that since President Biden took office, companies have invested nearly US$85Bn in EV and battery manufacturing and infrastructure, with US$13Bn of spending announced this year.  Meanwhile, the number of EVs sold in the USA has tripled since the President took office. 

It argues that this growth has been underpinned by regulation, specifically the Bipartisan Infrastructure Law, which invests US$7.5Bn in charging infrastructure and makes US$7Bn available to ensure domestic manufacturers have the critical minerals and other components necessary to make batteries.  The briefing note also references the Inflation Reduction Act, which provides EV consumer incentives, tax credits for manufacturers and grants, and the CHIPS and Science Act, which makes investments in building domestic capacity for semiconductors.

Since President Biden took office, companies have announced investments of more than US$36Bn in EV manufacturing and US$48Bn in batteries.  While the extent to which this is policy, rather than market, driven is debatable – it is clear that the US policy agenda is supportive. 

However, many feel there is much more to be done with regard to securing critical materials, with Ford last week calling for faster mine permitting, greater transparency in the review process and a boost in federal funding for geological mapping.

The recent passing of the Inflation Reduction Act in the USA implies huge additional future demand for the critical materials.  A sustainable supply of these materials at scale is by no means guaranteed, and the potential for raw material bottlenecks causing a barrier to the Act's implementation is considerable.  Importantly, the bill stipulates that a sizable proportion of the materials consumed in future need to be mined, recycled, and refined in the USA or in a free trade partner country.  Thus, to ensure that the Act’s ambitions are met, it will be essential for the US government to create the conditions for the further development of sustainable, resilient critical material supply chains in North America. 

  • 15 Sep 2022
  • USA
  • Automotive
  • Batteries

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