Understanding the Inflation Reduction Act’s Impact on EV Batteries
In this article, Pinnacle Converting Equipment discusses the implications of President Biden’s Inflation Reduction Act on EV battery production in America. Specifically, we cover:
- What’s inside an EV battery
- What American manufacturers can do to compete
- Where to get battery converting equipment
Recently, President Biden signed the Inflation Reduction Act, which requires at least 50% of an electric vehicle’s battery to be made in America to qualify for a federal discount. Unfortunately, the United States’ current battery production landscape looks dismal compared to countries like China and even Australia. Sourcing the materials required for battery production in the U.S. could prove difficult (if not entirely impossible).
Rather than focusing on sourcing materials within America, manufacturers should direct their efforts towards building up their EV battery production and assembly capabilities. By properly equipping their facilities, manufacturers can remain competitive in the space while satisfying the Inflation Reduction Act’s EV battery requirements.