Last year was a big year for electric vehicles (EVs), with the U.S. announcing $73 billion in EV investments for 2022 alone.
- In 2022 companies announced $73 billion of EV investment plans for the U.S., including EV plants, battery plants, and battery recycling.
- The U.S. is attempting to shift away from China as the country produces around 90% of global production for EV-battery components and begin producing the parts in the U.S.
- Moving to the U.S., companies will avoid supply-chain issues and ensure their vehicles are supported by the $7,500 tax credit for vehicles produced in America.
Why it’s news
Last year was huge for EVs as millions of people switched to battery-powered cars, and production companies announced billions of U.S. investments in the technology.
EV-production companies announced $73 billion of investment plans for the U.S., including EV plants, battery plants, and battery recycling.
Many EV companies announced plans to put plants in the U.S. to avoid supply-chain issues and to ensure their vehicles are supported by the $7,500 tax credit for electric vehicles produced in America.
The U.S. has around 1.4 million EVs on the road, but after President Joe Biden announced a tax credit for EVs produced in America, many companies are expecting a huge increase in the market.
China currently produces around 90% of battery components for EVs worldwide. By adding battery plants across the U.S., America will no longer have to rely on China for those parts and lower the cost of production.
The plants will boost EV production in the U.S. and bring thousands of jobs to the country.
The plants have been announced, and some have begun production, but many are still working on opening the doors. It takes a long time to plan, build and train employees for the new production plants, but many are working full speed to get production rolling.