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North America is leading the way in battery cell manufacturing for EVs — here's how it could change our economy

A new report from Clean Energy Associates affirmed that this has been made possible by the Biden administration's Inflation Reduction Act.

North America leading battery cell manufacturing

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North America is now leading the way for newly planned battery cell manufacturing factories for electric vehicles (EVs). 

According to a new report by Clean Energy Associates (CEA), called the "Energy Storage System Supplier Market Intelligence Report," North American leadership in this sector became official at the end of 2022. The report also affirmed that this has been made possible by the Inflation Reduction Act (IRA), which was approved by Congress last year. 

Although China is still ahead in the manufacturing of battery cells, its share is expected to decline in the next few years, as reported by Electrek.

Meanwhile, Europe has experienced setbacks and terminations of various proposed battery plants, mainly as a result of high energy costs and the attractive policies of other nations encouraging clean energy and electric vehicle production.

From 2021 to 2022, global usage of EVs went up by 72% and is expected to grow even more in the coming years, according to Electrek

According to a 2022 study conducted by the McKinsey Battery Insights team, the complete lithium-ion (Li-ion) battery industry is expected to expand at a yearly rate of over 30% between 2022 and 2030. 

Electric vehicles are much better for the environment than traditional gas-guzzling vehicles. Close to 30% of all harmful planet-warming pollution comes from the transportation industry in the United States (23% globally). 

Pollution from gasoline-powered motor vehicles is also extremely harmful to human health, while today, EVs play a fundamental role in the transition to a green, pollution-free economy.

According to Research and Markets, aside from the political incentives, other factors driving North America's market growth are "the increasing adoption of electric vehicles, the presence of raw material resources for cobalt and lithium, and increasing investment in EV battery development."

Commenters reacted to the Electrek article with their own thoughts.

"Once the government has seeded these vital industries, it will continue to encourage R&D and invest in the grid and renewable fuel sources," the top comment read. "Uncle Sam will then phase out the incentives and subsidies."

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