For the first time, global automakers are rapidly moving their electric vehicle production to the U.S. and their battery supply chains out of China—and it’s no fluke. It’s in response to the Inflation Reduction Act’s electric vehicle tax credit, which gives consumers a $7,500 discount on EVs that are predominantly made with American parts on American soil.
You don’t have to just take our word for it. Earlier this month, the IRS released its updated list of models that meet the U.S.-made manufacturing requirements. Even though the requirements got stricter, more EVs met them—27 models, or two-thirds of the market by sales. That is because automakers are opening more U.S. plants to assemble them, and battery companies are opening more U.S. factories to supply them. Over 450 EV and battery companies have announced they are moving to America or expanding factories here since the passage of the Inflation Reduction Act. It’s happening: America is chipping away at China’s edge.
