Environmental group says manufacturing of EVs, batteries increasing rapidly

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According to a new report from the Environmental Defense Fund, electric vehicle and battery manufacturing in the United States increased to nearly $100 billion over the last year.

The report, released by the fund and engineering, environment and professional services consultant firm WSP, found that since the passage of the Inflation Reduction Act, EV, EV batteries and EV component manufacturing grew by 56 percent. Over the past eight years, manufacturers have announce more than $165 billion in investments in EV and EV battery manufacturing facilities, but $92.3 billion of that amount was reported in just the last 12 months.

“The Inflation Reduction Act includes extensive EV infrastructure funding investments,” said Dana Lowell, national zero emissions technical advisor at WSP. “Alongside the Bipartisan Infrastructure Law, these strategic investments in the EV ecosphere and manufacturing have set the stage for creation of economic zones and micro hubs that equate to job creation, commerce development, and key technology and manufacturing advancements. The Federal investments and incentives are benefiting the communities where new investments are being made and are helping shape our future economy.”

The report found that manufacturers have announced more than 179,000 new EV-related jobs between 2015 and 2023, almost half of which were announced in the last year. Another 800,000 additional jobs in the industry are anticipated the report said. As strong federal investments and incentives continue, EV and EV battery manufacturing jobs and production will continue to grow the report said.

By 2026, the report said, U.S. EV manufacturing facilities will have the capability of making about 4.7 million passenger vehicles annually. Additionally, by 2027, U.S. facilities will produce enough batteries to supply 12.2 million new passenger vehicle each year, representing 95 percent of new vehicles sold in 2022.