The onshoring of battery manufacturing for EVs began as a trickle in the course of the COVID-19 pandemic. Then it was a tsunami.
In 2019, simply two battery factories had been working in the US with one other two underneath development. At present there are about 34 battery factories both deliberate, underneath development, or operational within the nation.
Former U.S. President Joe Biden’s Inflation Discount Act (IRA), signed into regulation August 16, 2022, may not have been the preliminary catalyst behind the onshoring battery manufacturing unit pattern. But it surely did assist open the spigot and speed up the tempo of manufacturing unit initiatives — to not point out sparking a local weather tech arms race with the EU.
Two and a half years later, we’re nonetheless monitoring the fallout, regardless that the IRA’s destiny is now unsure.
In January 2025, President Donald Trump ordered a freeze on IRA funding disbursements, however lots of these funds have already made it into producers’ fingers. That order additionally hasn’t stopped the already-moving prepare of billions of personal sector {dollars} invested in clear vitality.
As a result of whether or not Trump desires to again clear vitality or not, the actual fact stays that the U.S. must have extra management over its battery provide chain, quite than ceding management to China. That’s significantly true in gentle of Trump’s 10% tariffs on Chinese language imports. Automakers noticed what occurred in the course of the chip scarcity disaster that hampered manufacturing in the course of the Covid-19 pandemic, and they’re detest to repeat the identical errors.
What has adopted is a wave of automakers and battery makers — international and home — pledging to provide North American–made batteries earlier than 2030. (See every automaker’s plans right here and battery maker’s plans right here.)
IRA carrots and sticks
Why a lot funding into onshoring EV battery manufacturing? One cause was as a result of the IRA is rife with incentives for automakers and customers to provide domestically — a concerted effort to finish the U.S.’s reliance on China for batteries, whereas concurrently assembly Biden’s aim to make 50% of all new car gross sales within the U.S. electrical or hybrid by 2030. And although Trump has taken a step again from the IRA, electrical autos can nonetheless qualify for the complete $7,500 EV tax credit score in the event that they meet sure battery sourcing and manufacturing pointers.
The IRA requires that 60% of the worth of battery elements be produced or assembled in North America in 2024 to qualify for half of the tax credit score, $3,750. That share will improve to 100% beginning in 2029. To get the remaining half, 50% of the worth of essential supplies have to be sourced from the U.S. or a free commerce settlement nation in 2024. That share will increase to 60%, 70% and 80% for autos produced in 2025, 2026 and 2027 and past, respectively.
The IRA’s superior manufacturing credit that give the producer a payout from the Treasury are seemingly susceptible to being eradicated, however it’s value explaining how they went for the previous couple of years. Beneath Part 45X, the manufacturing of battery cells qualifies for a credit score of $35 per kilowatt-hour of capability, and the manufacturing of battery modules qualifies for $10 per kilowatt-hour. (Battery cells are containers that chemically retailer vitality, and they’re organized into modules. Battery packs may be made up of cells or modules.)
Corporations can be reimbursed 10% of the prices incurred as a result of manufacturing of electrode energetic supplies, just like the cathode and anode. The cathode shops lithium when a battery is discharged, and the anode shops lithium when a battery is charging. They’re each elements of a cell and may comprise supplies like graphite, silicon, zinc, aluminum, magnesium, nickel and cobalt.
Automakers and battery producers have collectively invested and promised to speculate round $112 billion in constructing home cell and module manufacturing. Collectively, these firms promise to ship an annual capability of near 1,200 gigawatt-hours earlier than 2030, if every manufacturing unit reaches most capability. That’s roughly sufficient batteries for 18 million EVs, based mostly on earlier Tesla predictions that say about 100 GWh capability can energy round 1.5 million EVs.
Exterior of the battery sector, the IRA has helped gasoline a complete $245 billion in non-public funding into clear vitality and know-how manufacturing, in accordance with Atlas Public Coverage’s Clear Financial system Tracker.
The funding into producing batteries within the U.S. and Canada modifications commonly, so we’ve began monitoring these guarantees.
Automakers investing in home battery manufacturing
TechCrunch created a useful map exhibiting the situation of every battery manufacturing unit plus some primary data, together with deliberate capability. For these on the lookout for extra particulars and context, scroll all the way down to examine every producer’s deliberate or operational battery factories. Or click on on a location on the map for a pop-up to look.
Word: The factories included beneath are producing or will produce battery cells and modules. We didn’t embrace issues like battery supplies manufacturing. Subsequently, it isn’t an exhaustive checklist of all of the manufacturing going into creating EV batteries in North America.
The place are the EV batteries being produced in North America?
Hover over the inexperienced dots for a pop-up with extra details about every manufacturing unit.
This text was initially printed August 16, 2023, and was final up to date February 6, 2025.
BMW
In October 2022, BMW introduced a $1.7 billion funding within the U.S. that might see its Spartanburg, South Carolina, plant readied for the manufacturing of EVs. Of the full funding, $700 million was allotted to the buildout of a battery meeting facility in close by Woodruff. The automaker informed TechCrunch that the beginning of manufacturing is scheduled for the tip of 2026, however it hasn’t confirmed which EVs can be produced there. BMW’s Spartanburg manufacturing unit is presently the place its sports activities utility and crossovers are constructed, together with the X3, X4, X5, X6, X7 and XM.
BMW additionally partnered up with battery maker AESC (previously Envision AESC) to speculate further funds in a battery cell plant in Florence, South Carolina (extra on that within the AESC part). The AESC plant will produce BMW’s new sixth-generation spherical lithium-ion battery cells for Plant Spartanburg EVs. Groundbreaking on each the Woodruff and Florence services occurred in June.
Daimler, Paccar, Accelera, EVE Vitality
In September 2023, Daimler Truck and Paccar introduced a three way partnership with vitality know-how firm Accelera and Chinese language battery maker EVE Vitality to construct a battery cell manufacturing plant that might help the adoption of EVs for medium- and heavy-duty business transportation. The businesses stated in January 2024 that they chose a website in Mississippi.
Accelera, Daimler and Paccar will every personal 30% of the mixed firm, referred to as Amplify Cell Applied sciences, and collectively management the enterprise, which can concentrate on lithium-iron-phosphate (LFP) battery tech. EVE will function a know-how supplier, contributing its battery cell design and manufacturing experience in change for 10% of possession.
Ford
In September 2021, Ford created a three way partnership (JV) with South Korean battery maker SK On. The aim of the JV, referred to as BlueOval SK, is to construct three battery crops in the US. Two are positioned in Kentucky; the third manufacturing unit in Tennessee can be co-located with a Ford meeting plant, which can produce the automaker’s second-generation electrical truck, code named Undertaking T3.
Ford and SK On secured a $9.2 billion mortgage from the U.S. Division of Vitality to assist finance the development of the three battery factories in Kentucky and Tennessee. Whereas one of many Kentucky crops is scheduled to start manufacturing in 2025, the second plant’s manufacturing has been paused as Ford retains an eye fixed on shopper demand for EVs.
Ford can also be constructing a lithium-iron-phosphate plant in Michigan. Chinese language battery maker CATL is licensing its know-how to Ford as a service supplier on a contractual foundation. That may change sooner or later, although, as Ford has now attracted the ire of Home Republicans who’re probing the automaker’s relationship with the Chinese language battery firm. In November 2023, Ford made the choice to reduce funding in its Michigan plant from $3.5 billion all the way down to $2 billion amid slower-than-expected demand for EVs, which suggests a 43% drop in manufacturing capability and decreased anticipated employment.
Basic Motors
Basic Motors goals to have three complete battery crops within the U.S. by means of its three way partnership with LG Vitality Options, which was named Ultium Cells till October 2024. That three way partnership secured in December 2022 a $2.5 billion mortgage from the federal government to assist fund its battery manufacturing unit initiatives.
Not solely has GM dropped the model title Ultium, however it additionally plans to undertake lithium iron phosphate (LFP) battery know-how to cut back the price of its EVs by “up to $6,000,” GM’s VP of batteries Kurt Kelly stated on the automaker’s investor day. The Ultium platform makes use of the extra widespread nickel cobalt manganese recipe.
GM additionally stated throughout its October 2024 investor day that it could construct a new battery cell improvement middle in Warren, Michigan, with begin of manufacturing focused for early 2027.
LG isn’t the one battery maker GM is working with. The automaker in April 2023 introduced a JV with Samsung SDI to construct a new battery plant in the US.
Except for quantity manufacturing, GM has additionally partnered with startup SolidEnergy Methods in 2021 to construct a prototyping facility in Woburn, Massachusetts. The aim is to construct a high-capacity, pre-production lithium-ion battery this yr.
GM is engaged on taking management of the battery supplies provide chain, as nicely. In March 2022, the corporate partnered with South Korea’s Posco Chemical to construct a $400 million battery supplies facility in Canada. The plant will produce cathode energetic supplies. GM introduced in February 2024 a take care of LG Chem that might see the automaker investing $19 billion over the subsequent decade to supply essential supplies from LG Chem’s Tennessee plant.
Honda
In August 2022, Honda introduced its three way partnership with South Korea’s LG Vitality Options to provide the North American market with “pouch type” battery cells. The ability in Ohio will produce each cells and modules.
The automaker has additionally made strides to safe battery useful resource recycling channels and has agreements with companies, together with Ascend Components, Cirba Options and Posco Holdings.
Honda’s engine plant in Anna, Ohio, can also be within the strategy of being retooled so as to add manufacturing of casing for battery modules that can energy Honda and Acura EVs made in Ohio.
Hyundai
In April 2023, Hyundai and SK On authorized plans to arrange a three way partnership to construct a $5 billion battery plant in Bartow County, Georgia. Inside a number of months, Hyundai and LG Vitality Answer fashioned one other JV to construct a battery cell manufacturing unit close to Savannah, Georgia, that can help the manufacturing of 300,000 models of EVs yearly as soon as the plant reaches mass manufacturing. The automaker stated Hyundai Mobis, Hyundai’s elements and repair arm, will assemble battery packs utilizing cells from the plant.
Hyundai Mobis in 2022 additionally introduced plans to construct an EV battery module plant in Alabama that can be capable to provide greater than 200,000 EV batteries yearly to its mother or father firm as soon as the plant reaches full capability.
Mercedes-Benz
Mercedes-Benz opened a battery plant at its present manufacturing facility in Alabama in 2022. That summer time, the plant additionally turned the manufacturing website for the automaker’s absolutely electrical EQS SUV. The Alabama facility can also be assembling the EQE SUV, with the Maybach EQS SUV to comply with this yr, in accordance with a spokesperson from the corporate.
Mercedes can also be working with Sila, a next-gen battery supplies firm, to include Sila’s battery chemistry into batteries as an choice for patrons of the upcoming G-Class. Sila replaces the graphite in a battery cell with silicon and is within the strategy of scaling up at its new Washington state facility. The businesses are concentrating on mid-decade for a range-extended model of the G-class.
Stellantis
Stellantis and Samsung SDI commenced development on their joint-venture EV battery facility in Indiana in March 2023. The manufacturing unit will produce each lithium-ion cells and modules.
The corporate introduced in July 2023 it could construct a second battery manufacturing unit with Samsung, which can open in early 2027. In October, Stellantis shared extra particulars.
Stellantis, which incorporates manufacturers Alfa Romeo, Chrysler, Jeep and Ram, additionally introduced a three way partnership with LG Vitality Answer in 2021, referred to as NextStar Vitality, to construct a North American manufacturing unit with an annual capability of 40 GWh. In March 2022, the 2 firms introduced a binding settlement to speculate (CAD $5 billion) $3.7 billion to provide cells and modules at a producing plant in Windsor, Ontario, Canada.
Tesla
Since starting manufacturing at Gigafactory Nevada in 2017, Tesla has produced greater than 7.3 billion battery cells and 1.5 million battery packs, which give about 39 GWh capability yearly, in accordance with Panasonic.
Tesla in January 2023 introduced plans to speculate billions extra into the Nevada manufacturing unit to incorporate a brand new 4680 cell manufacturing unit with capability to provide sufficient batteries for 1.5 million light-duty autos yearly. The 4680 cells, which had been designed by Tesla and revealed at Battery Day 2020, are supposed to cut back battery value by over 50%. Tesla has been making an attempt to get the cells to quantity manufacturing over the previous few years however has run into roadblocks. A latest report from The Data exhibits that Elon Musk might need to depend on exterior suppliers for batteries quickly if the 4680 crew doesn’t make headway.
At first of 2023, Tesla additionally laid out plans to increase its present Gigafactory Austin to incorporate battery cell testing and the manufacture of cathode and drive models, however hasn’t shared extra particulars on these plans.
In Might 2023, Tesla broke floor on a Texas lithium refinery, making it one of many solely U.S. automakers to refine its personal lithium. The automaker stated it could spend $375 million on the Corpus Christi manufacturing unit that can have a capability of fifty GWh, with manufacturing slated to start in 2025.
Toyota
Toyota’s deliberate battery plant in North Carolina, initially introduced in 2021, will produce each cells and modules, in accordance with the corporate. In late October 2023, Toyota introduced that it could make investments billions extra into the manufacturing unit. When it comes on-line, it’ll have 10 manufacturing strains to help each hybrid and EVs.
In February, 2025, Toyota introduced that its North Carolina plant is able to start manufacturing and can begin transport batteries for North American electrified autos in April.
Toyota has additionally enlisted the assistance of South Korean battery maker LG Vitality Answer, which can completely construct EV batteries for the Japanese automaker out of its Michigan plant (extra on that beneath.)
The Japanese automaker can also be constructing a battery lab at its North American analysis and improvement headquarters in Michigan, the place it will probably develop and consider the standard of its EV batteries. The $48 million lab is anticipated to start operations in 2025, and it’ll help the corporate’s manufacturing at factories in North Carolina and Kentucky.
Volkswagen
In July 2022, Volkswagen arrange a separate battery firm, PowerCo SE, to construct batteries for its upcoming EVs. Since its launch, the corporate has selected the situation of three cell factories: Two in Europe (Salzgitter, Germany, and Valencia, Spain) and one in North America (St. Thomas, Canada). PowerCo expects to generate an annual income of over 20 billion euros by 2030.
Whereas VW’s battery manufacturing unit is in Canada and never technically within the U.S., it ought to nonetheless be eligible to obtain Inflation Discount Act incentives.
Volvo
Volvo has a battery meeting manufacturing unit in Charleston, South Carolina, however the automaker doesn’t manufacture batteries or battery elements there. Volvo wouldn’t affirm every other plans it has for battery manufacturing in North America.
Battery producers constructing in North America
AESC
AESC (previously Envision AESC) is a Japanese battery know-how firm that has promised to construct three U.S. services earlier than the tip of the last decade. The corporate’s Tennessee plant has been in operation for a while. AESC broke floor at its Kentucky and South Carolina crops in August 2022 and June 2023, respectively. In March this yr, AESC stated it could increase its South Carolina operations, bringing complete funding within the venture as much as $3.12 billion.
Gotion
Gotion Inc., which is headquartered in Silicon Valley and owned by Chinese language firm Gotion Excessive-Tech, first introduced its intent to construct a battery manufacturing unit in Michigan in October 2022. The manufacturing unit, which secured $175 million in state funds in April 2023, aimed to construct each cathode and anodes that might be used for each EVs and photo voltaic turbines, in accordance with a spokesperson from the corporate. Nevertheless, Gotion has confronted pushback from locals. The township’s board voted to reverse a beforehand authorized plan to increase town’s water provide to the situation of the manufacturing unit. In March, Gotion filed a lawsuit in opposition to the city, which is ongoing.
Whereas the Michigan manufacturing unit is clearly on maintain, Gotion has one other one within the works. In September 2023, Gotion additionally introduced plans to arrange a second battery manufacturing plant in Illinois. The corporate is on the receiving finish of state incentives valued at $536 million and expects to obtain tax advantages totaling $213 million over $30 years, so long as Gotion invests a minimal of $1.9 billion and the creation of 1000’s of well-paid jobs.
Kore Energy
Battery cell and module developer Kore Energy introduced in March that it had acquired approval to construct a battery manufacturing manufacturing unit in Buckeye, Arizona. Kore Energy will produce batteries for vitality storage programs and e-mobility merchandise, together with vehicles, vans, buses, boats and trains. The corporate informed TechCrunch it intends to help OEMs by manufacturing 30D-compliant batteries, so Kore is working carefully with home companions to line up essential supplies suppliers onshore.
LG Vitality Answer
South Korea’s LG Vitality Answer provides EV batteries to automakers like Tesla, Lucid Motors, Toyota and Proterra. The battery maker has joint ventures to construct battery factories with Basic Motors, Honda, Hyundai and Stellantis.
In early 2023, LG stated it could quintuple the capability of its present lithium-ion cell plant in Michigan, which was inbuilt 2010, as a part of a take care of Toyota LG’s Holland manufacturing unit makes massive polymer battery cells, or pouch sort cells, and packs for EVs. The expanded plant will produce new lengthy cell design batteries, which LG says ought to add extra vary, higher storage, and a extra simplified pack construction.
The battery maker additionally stated it could quadruple its deliberate funding in a brand new manufacturing unit in Arizona to $5.5 billion, a big portion of which can be devoted to EV battery manufacturing. The advanced could have two manufacturing services — one devoted to cylindrical batteries for EVs and one other for lithium iron phosphate pouch-type batteries for vitality storage programs.
In August 2023, LG introduced a constructing spree in North America, with plans to spend as much as $17 billion by means of 2025 on setting up a complete of eight factories (two of that are already operational) with greater than 300 GWh capability. LG has not but shared particulars on every plant.
LG’s mother or father firm, LG Chem, individually broke floor on a Tennessee plant that can produce cathode materials in December 2023. LG plans to speculate $3.2 billion in that plant with the aim of manufacturing 60,000 tons of cathode materials at peak manufacturing. GM has signed on as a buyer, pledging $19 billion.
Northvolt
Northvolt, a Swedish producer of lithium-ion batteries, introduced in late September 2023 plans to open its first gigafactory in North America. The corporate had reportedly been evaluating between North America or Germany for its subsequent gigafactory, and the previous received out as a result of incentives within the IRA.
The venture is anticipated to value simply over $7 billion, with Northvolt bringing in $3.2 billion and native and federal governments contributing round $4.2 billion. The enlargement is off the again of a $1.2 billion increase, backed by BlackRock.
Northvolt informed TechCrunch it has an “offtake agreement with an anchor customer,” that means a purchaser for its cells, however wouldn’t disclose the title of the corporate.
The manufacturing unit may also characteristic Revolt, Northvolt’s battery recycling program, which could have a capability of 15 GWh. Northvolt informed TechCrunch it hopes to recycle half of the uncooked supplies wanted for cell manufacturing by 2030.
Our Subsequent Vitality
Battery startup Our Subsequent Vitality (ONE) introduced plans in October 2022 to construct a gigafactory in Michigan dedicated to lithium-iron-phosphate cells, AKA LFP batteries. The ability, which is supported by a $200 million grant from the state of Michigan, will embrace uncooked materials refinement, cathode supplies manufacturing, and cell and battery manufacturing.
To that finish, the corporate in February 2023 raised a $300 million Sequence B to assist get it to manufacturing.
Panasonic
Panasonic stated in July 2022 that it plans to construct the world’s largest EV battery plant, a $4 billion manufacturing unit in Kansas that can manufacture and provide lithium-ion batteries to EV makers. The ability in De Soto can be Panasonic’s second EV battery plant within the U.S., after the Panasonic Vitality of North America (PENA) facility in Sparks, Nevada, which operates inside Tesla’s Nevada Gigafactory and provides the EV maker with batteries.
Panasonic stated in June 2023 that it plans to increase manufacturing at PENA by 10% inside three years. Across the identical time, the Japanese firm stated it could construct a minimum of two new factories for the manufacturing of Tesla 4680 battery cells in North America by 2030. Nevertheless, in January, Panasonic’s CEO Yuki Kusumi stated the battery enterprise will concentrate on boosting productiveness over constructing one other battery manufacturing unit.
SK Battery America
South Korean battery producer SK On has created joint ventures to develop batteries with Ford and Hyundai. The corporate’s U.S. subsidiary, SK Battery America, has its personal plans.
SK Battery America has invested $2.6 billion into two manufacturing crops in Jackson County, Georgia, and reached mass manufacturing in early 2022.
