Tax breaks introduced by the Biden administration to start a deep energy transition, which were initially highly criticized by manufacturers and some trading partners, including Europe, are giving a real boost to the US auto industry.

This is according to a study by Clean Energy Associates, which indicates that North America has become the region of the world experiencing the greatest growth in terms of investment in electric vehicles and their entire ecosystem.

While Europe is slowly but surely moving forward with several battery factories and many ongoing projects, on the other side of the Atlantic things seem to be moving much faster again.

Many projects are in the starting blocks

Clean Energy Associates study estimates 186% increase in investment in EV batteries by 2025 compared to 2022. China will remain the world leader, even if its market share will decrease somewhat in the coming years, in particular with the growth of the North American market.

As biased as this analysis may seem (Clean Energy Associates is based in Denver, Colorado), it confirms what we’ve seen in recent months.

The decision to make only models built in the United States and whose raw materials are mined on American soil or in Washington’s “partner” countries “eligible” for incentives is paying off. Several major manufacturers are announcing many projects in the US in the coming years.

Who are interested builders?

For example, Ford plans to build a 35 GWh battery plant with CATL in Michigan, and Envision AESC will work with BMW on a battery plant designed for electric models to be located in South Carolina.

Hyundai and LG will join forces to build a 30 GW/h plant in Georgia by 2025 that will produce 300,000 electric cars a year. Finally, Stellantis plans four gigafactories in North America.