1. It has been a record year for opening of EV related plants in the United States with manufacturers announcing $73 Billion in planned projects for 2023 according to NPR. This huge investment shows confidence in the ever growing EV market.
2. New battery plants are also following this trend with the vast majoring going into states near EV manufacturing in the United States.
"American electric-car makers traditionally haven’t assembled batteries themselves. They rely on a far-flung supply chain. The raw materials are mined primarily in countries such as Australia, China, Congo and Indonesia. Chemical processing, battery components and assembly are mostly done by Chinese companies."
However, most of those parts and batteries will be made in the United States in the next few years. This change is being driven with the Inflation Reductio Act that provides incentives for North American built batteries but penalizes companies that use batteries and parts from abroad. Massive growth of EV related projects will occur in the United States.
3. EV prices are expected to drop, making EV's more affordable in the next few years. This will also fuel the EV market, chargers, and related products and services. This will be largely driven by less expensive batteries and US investment and a $7500 tax incentive does not hurt either for EV buyers. Another factor is total cost of ownership. EV's require far less maintenance than traditional gasoline powered vehicles. All of this will drive EV ownership further down the income ladder.
EV Battery Manufacturing
What trends are you seeing? Questions or comments about EV's are welcome below or email us at news@ph1c.com