The United States' battery production for electric vehicles is getting a significant development for its current concerns now, as more companies are starting on groundbreaking for future facilities. There are new fundings and investments made by companies like LG, Panasonic, Samsung, and SK Innovation to boost US battery manufacturing for future needs.
It all aims to focus on adhering to the Inflation Reduction Act for future tax credits.
Battery Production in the US: Investments for Growing Industry
(Photo : Pexels/Kindel Media)
According to a report by TechCrunch, there are more investments now from different battery companies that aim to deliver goods that will help boost the production of power cells here in the US. It said that Alix Partners claimed that companies like LG Energy, Panasonic, Samsung, and SK Innovation invested more than $36 billion in its production.
The new law would aim to help boost production and sourcing materials from local suppliers and have the manufacturing take place right here in the country. The focus will help in boosting more of the country's development in EVs, helping in the future of clean energy transportation.
The report said that changing and experimenting with new battery chemistries will also have a significant boost from this focus as it would source more and produce it locally.
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Inflation Reduction Act: US Production for Tax Credits
The Congress and Senate are already finalizing the law that would bring its entire legal needs and requirements for its constituents, something that the manufacturers need to adhere to for future tax credits.
The Inflation Reduction Act would help a lot in boosting the country's transition to clean energy, as well as aid individuals in availing tax credits for their purchase of EVs, particularly those with local production of batteries and their make.
US' EV Tax Credits for Companies Now
Vehicles sold in the country need certain eligibility for the EV tax credits that they will receive to give incentives to future owners of the clean energy cars, now aiming to reduce their prices through a new law.
The new Senate bill and something that Congress was working on are now seeing a progression for a law on reducing inflation via tax credits coming back for companies like Toyota, Tesla, and General Motors.
However, recent reports claim that there are significant disputes on this new law as there are no eligible cars and companies that may avail of it now as its Li-On batteries mostly come from China. The legal requirements now focus on having its production in the country, as well as sourcing 40 percent of the materials used from local suppliers.
Soon, the law would require fully sourcing it from local suppliers by 2030.
Now, there are more battery productions and developments that are on their way to starting production, as well as more investments and funds that would help boost the local development of the batteries. Its use for EVs would ensure that people get to avail of EV tax credits from the different manufacturers, as it adheres to the laws created for this venture.
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Written by Isaiah Richard
