Battery manufacturers are rushing to develop capacity in the United States to meet demand for electric vehicles while qualifying for billions in federal incentives, according to a new BofA Global Research report.
“So far, 17 new EV battery facilities have been announced, aided by the latest round of Federal incentives in the Inflation Reduction Act,” Bank of America Securities Research Analyst Andrew Obin wrote in the Feb. 22 report.
The facilities have construction starts ranging from 2020 to 2024 and represent planned capital expenditures of almost $52 billion, according to Obin. The Inflation Reduction Act’s Advanced Manufacturing Production Credit “will likely further incentivize EV battery capacity,” he wrote. “The provision is estimated to be worth $31bn over 2022-2031.”
