U.S. Invests $2.8B Into EV Battery Production
On Wednesday, October 19th, the White House announced the passing of a Bipartisan Infrastructure law that will provide $2.8 Billion in funding for 20 companies across 12 states in the United States to expand domestic manufacturing of batteries for electric vehicles as well as materials that are currently imported from other countries. Strengthening America’s energy independence and creating a strong American supply chain for electric vehicles and battery supplies.
The federal investment towards the batteries, which will be matched by the 20 recipient companies totaling more than $9 billion, will include components that affect both the electric grid and electric vehicles.
What does this mean for the electronics Industry?
Over the last several decades the majority of sourcing for critical minerals used for power, electricity, and electric vehicles has come from China. Moving the focus to the US enables movement away from China on the dependency on these materials, such as lithium, nickel, and graphite. Inching the US closer to it’s goal of making half of all new vehicles electric by 2030.
The announcement also builds the US economy creating an estimated 8,000 new domestic jobs. The Infrastructure law is just another leg in building America’s domestic manufacturing of electric vehicles. The Chips and Science Act, read more about that here, and the Inflation Reduction Act combined with the Infrastructure law will invest over $135 Billion dollars into domestic manufacturing.
SiliconExpert will be keeping an eye out for new updates on the effect the infrastructure funding will have on the U.S and global supply chains as they move towards cleaner energy and domestic production.
How Will This Affect Your Supply Chain?
The United States has depended on foreign sourcing for many of the processed versions of materials needed to produce Electric Vehicle batteries for companies like Tesla. Now the United States is building resiliency into its supply chain by diversifying global manufacturing. SiliconExpert can help you build resiliency into yours!
SiliconExpert monitors major developments in the electronics and manufacturing market and alerts you to risks in your Bill of Materials (BOM). With BOM Manager, you’ll be able to see BOM health risk alerts which notify you if the BOM contains parts at risk of disruption, such as a drop in inventory or increase in lead time.
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