The onshoring of battery manufacturing for EVs started as a trickle through the COVID-19 pandemic. Then it became a tsunami.
In 2019, simply two battery factories have been working in america with one other two underneath development. At the moment there are about 34 battery factories both deliberate, underneath development, or operational within the nation.
Former U.S. President Joe Biden’s Inflation Reduction Act (IRA), signed into legislation August 16, 2022, won’t have been the preliminary catalyst behind the onshoring battery manufacturing unit pattern. However it did assist open the spigot and speed up the tempo of manufacturing unit initiatives — to not point out sparking a climate tech arms race with the EU.
Two and a half years later, we’re nonetheless monitoring the fallout, though the IRA’s destiny is now unsure.
In January 2025, President Donald Trump ordered a freeze on IRA funding disbursements, however many of those 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 power.
As a result of whether or not Trump desires to again clear power or not, the actual fact stays that the U.S. must have extra management over its battery provide chain, relatively than ceding management to China. That’s significantly true in mild of Trump’s 10% tariffs on Chinese language imports. Automakers noticed what occurred through the chip scarcity disaster that hampered manufacturing through 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 here and battery maker’s plans here.)
IRA carrots and sticks
Why a lot funding into onshoring EV battery manufacturing? One motive was as a result of the IRA is rife with incentives for automakers and shoppers to provide domestically — a concerted effort to finish the U.S.’s reliance on China for batteries, whereas concurrently assembly Biden’s objective to make 50% of all new automobile gross sales within the U.S. electrical or hybrid by 2030. And although Trump has taken a step again from the IRA, electrical automobiles can nonetheless qualify for the complete $7,500 EV tax credit score in the event that they meet sure battery sourcing and manufacturing tips.
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 proportion will improve to 100% beginning in 2029. To get the remaining half, 50% of the worth of essential supplies should be sourced from the U.S. or a free commerce settlement nation in 2024. That proportion will increase to 60%, 70% and 80% for automobiles 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 liable to being eradicated, however it’s value explaining how they went for the previous couple of years. Under Section 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 power, and they’re organized into modules. Battery packs may be made up of cells or modules.)
Corporations will also be reimbursed 10% of the prices incurred as a result of manufacturing of electrode lively 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 might 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, primarily based on earlier Tesla predictions that say about 100 GWh capability can energy round 1.5 million EVs.
Outdoors of the battery sector, the IRA has helped gas a complete $245 billion in non-public funding into clear power and expertise manufacturing, in keeping with Atlas Public Coverage’s Clean Economy Tracker.
The funding into producing batteries within the U.S. and Canada adjustments frequently, so we’ve began monitoring these guarantees.
Automakers investing in home battery manufacturing
TechCrunch created a helpful map exhibiting the situation of every battery manufacturing unit plus some primary data, together with deliberate capability. For these in search of extra particulars and context, scroll right 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 under are producing or will produce battery cells and modules. We didn’t embrace issues like battery supplies manufacturing. Due to this fact, it’s not 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 revealed August 16, 2023, and was final up to date February 6, 2025.
BMW
In October 2022, BMW announced a $1.7 billion funding within the U.S. that may see its Spartanburg, South Carolina, plant readied for the manufacturing of EVs. Of the entire funding, $700 million was allotted to the buildout of a battery meeting facility in close by Woodruff. The automaker advised TechCrunch that the beginning of manufacturing is scheduled for the tip of 2026, however it hasn’t confirmed which EVs will likely 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 Power
In September 2023, Daimler Truck and Paccar introduced a three way partnership with power expertise firm Accelera and Chinese language battery maker EVE Power to construct a battery cell manufacturing plant that may assist the adoption of EVs for medium- and heavy-duty industrial transportation. The businesses mentioned in January 2024 that they chose a web site in Mississippi.
Accelera, Daimler and Paccar will every personal 30% of the mixed firm, known as Amplify Cell Technologies, and collectively management the enterprise, which can concentrate on lithium-iron-phosphate (LFP) battery tech. EVE will function a expertise supplier, contributing its battery cell design and manufacturing experience in trade for 10% of possession.
Ford
In September 2021, Ford created a joint venture (JV) with South Korean battery maker SK On. The objective of the JV, known as BlueOval SK, is to construct three battery vegetation in america. Two are situated in Kentucky; the third manufacturing unit in Tennessee will likely be co-located with a Ford meeting plant, which can produce the automaker’s second-generation electrical truck, code named Challenge T3.
Ford and SK On secured a $9.2 billion mortgage from the U.S. Division of Power to assist finance the development of the three battery factories in Kentucky and Tennessee. Whereas one of many Kentucky vegetation is scheduled to start manufacturing in 2025, the second plant’s manufacturing has been paused as Ford retains an eye fixed on client demand for EVs.
Ford can also be building a lithium-iron-phosphate plant in Michigan. Chinese language battery maker CATL is licensing its expertise 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 cut back funding in its Michigan plant from $3.5 billion right down to $2 billion amid slower-than-expected demand for EVs, which implies a 43% drop in manufacturing capability and diminished anticipated employment.
Common Motors
Common Motors goals to have three whole battery vegetation within the U.S. by way of its three way partnership with LG Power 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 identify Ultium, however it additionally plans to undertake lithium iron phosphate (LFP) battery expertise to cut back the price of its EVs by “as much as $6,000,” GM’s VP of batteries Kurt Kelty mentioned on the automaker’s investor day. The Ultium platform makes use of the extra widespread nickel manganese cobalt recipe.
GM additionally mentioned throughout its October 2024 investor day that it might construct a new battery cell development center 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 joint venture with Samsung SDI to construct a new battery plant in the United States.
Other than quantity manufacturing, GM has additionally partnered with startup SolidEnergy Systems in 2021 to construct a prototyping facility in Woburn, Massachusetts. The objective 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 properly. 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 lively supplies. GM introduced in February 2024 a cope with LG Chem that may 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 joint venture with South Korea’s LG Power Options to provide the North American market with “pouch kind” 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 Parts, Cirba Options and Posco Holdings.
Honda’s engine plant in Anna, Ohio, can also be within the technique of being retooled so as to add manufacturing of casing for battery modules that may energy Honda and Acura EVs made in Ohio.
Hyundai
In April 2023, Hyundai and SK On approved plans to arrange a three way partnership to construct a $5 billion battery plant in Bartow County, Georgia. Inside just a few months, Hyundai and LG Power Resolution fashioned another JV to construct a battery cell manufacturing unit close to Savannah, Georgia, that may assist the manufacturing of 300,000 items of EVs yearly as soon as the plant reaches mass manufacturing. The automaker mentioned Hyundai Mobis, Hyundai’s components 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 may have the ability to provide greater than 200,000 EV batteries yearly to its mum or dad firm as soon as the plant reaches full capability.
Mercedes-Benz
Mercedes-Benz opened a battery plant at its current manufacturing facility in Alabama in 2022. That summer time, the plant additionally grew to become the manufacturing web site for the automaker’s totally electrical EQS SUV. The Alabama facility can also be assembling the EQE SUV, with the Maybach EQS SUV to comply with this yr, in keeping 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 possibility for patrons of the upcoming G-Class. Sila replaces the graphite in a battery cell with silicon and is within the technique of scaling up at its new Washington state facility. The businesses are focusing 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 might build a second battery factory with Samsung, which can open in early 2027. In October, Stellantis shared more details.
Stellantis, which incorporates manufacturers Alfa Romeo, Chrysler, Jeep and Ram, additionally introduced a three way partnership with LG Power Resolution in 2021, known as NextStar Power, 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 keeping 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 automobiles yearly. The 4680 cells, which have 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 couple of years however has run into roadblocks. A latest report from The Information exhibits that Elon Musk might should depend on exterior suppliers for batteries quickly if the 4680 crew doesn’t make headway.
Initially of 2023, Tesla additionally laid out plans to expand its existing Gigafactory Austin to incorporate battery cell testing and the manufacture of cathode and drive items, however hasn’t shared extra particulars on these plans.
In Might 2023, Tesla broke ground on a Texas lithium refinery, making it one of many solely U.S. automakers to refine its personal lithium. The automaker mentioned it might spend $375 million on the Corpus Christi manufacturing unit that may 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 keeping with the corporate. In late October 2023, Toyota introduced that it might invest billions more into the manufacturing unit. When it comes on-line, it’ll have 10 manufacturing strains to assist each hybrid and EVs.
In February 2025, Toyota announced that its North Carolina plant is able to start manufacturing and can begin transport batteries for North American electrified automobiles in April.
Toyota has additionally enlisted the assistance of South Korean battery maker LG Power Resolution, which can solely construct EV batteries for the Japanese automaker out of its Michigan plant (extra on that under.)
The Japanese automaker can also be constructing a battery lab at its North American analysis and improvement headquarters in Michigan, the place it could develop and consider the standard of its EV batteries. The $48 million lab is predicted to start operations in 2025, and it’ll assist 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 assembly factory in Charleston, South Carolina, however the automaker doesn’t manufacture batteries or battery elements there. Volvo wouldn’t verify some 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 expertise 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 vegetation in August 2022 and June 2023, respectively. In March this year, AESC mentioned it might develop its South Carolina operations, bringing whole funding within the undertaking 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 mills, in keeping with a spokesperson from the corporate. Nonetheless, Gotion has confronted pushback from locals. The township’s board voted to reverse a beforehand accredited 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 Power announced in March that it had acquired approval to construct a battery manufacturing manufacturing unit in Buckeye, Arizona. Kore Energy will produce batteries for power storage programs and e-mobility merchandise, together with vehicles, vans, buses, boats and trains. The corporate advised TechCrunch it intends to assist OEMs by manufacturing 30D-compliant batteries, so Kore is working intently with home companions to line up essential supplies suppliers onshore.
LG Power Resolution
South Korea’s LG Energy Solution provides EV batteries to automakers like Tesla, Lucid Motors, Toyota and Proterra. The battery maker has joint ventures to construct battery factories with Common Motors, Honda, Hyundai and Stellantis.
In early 2023, LG mentioned it might quintuple the capability of its current lithium-ion cell plant in Michigan, which was in-built 2010, as a part of a deal with Toyota LG’s Holland manufacturing unit makes massive polymer battery cells, or pouch kind 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 mentioned it might quadruple its planned investment in a brand new manufacturing unit in Arizona to $5.5 billion, a big portion of which will likely be devoted to EV battery manufacturing. The advanced can have two manufacturing facilities — one devoted to cylindrical batteries for EVs and one other for lithium iron phosphate pouch-type batteries for power storage programs.
In August 2023, LG announced a building spree in North America, with plans to spend as much as $17 billion by way 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 mum or dad firm, LG Chem, individually broke ground on a Tennessee plant that may produce cathode materials in December 2023. LG plans to speculate $3.2 billion in that plant with the objective 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 undertaking is predicted to value simply over $7 billion, with Northvolt bringing in $3.2 billion and native and federal governments contributing round $4.2 billion. The growth is off the again of a $1.2 billion raise, backed by BlackRock.
Northvolt advised TechCrunch it has an “offtake settlement with an anchor buyer,” which means a purchaser for its cells, however wouldn’t disclose the identify of the corporate.
The manufacturing unit may even characteristic Revolt, Northvolt’s battery recycling program, which can have a capability of 15 GWh. Northvolt advised TechCrunch it hopes to recycle half of the uncooked supplies wanted for cell manufacturing by 2030.
Our Subsequent Power
Battery startup Our Subsequent Power (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 Series B to assist get it to manufacturing.
Panasonic
Panasonic mentioned in July 2022 that it plans to construct the world’s largest EV battery plant, a $4 billion manufacturing unit in Kansas that may manufacture and provide lithium-ion batteries to EV makers. The ability in De Soto will likely be Panasonic’s second EV battery plant within the U.S., after the Panasonic Power of North America (PENA) facility in Sparks, Nevada, which operates inside Tesla’s Nevada Gigafactory and provides the EV maker with batteries.
Panasonic mentioned in June 2023 that it plans to develop manufacturing at PENA by 10% inside three years. Across the identical time, the Japanese firm mentioned it might construct at least two new factories for the manufacturing of Tesla 4680 battery cells in North America by 2030. Nonetheless, in January, Panasonic’s CEO Yuki Kusumi mentioned the battery business will focus on boosting productivity 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 vegetation in Jackson County, Georgia, and reached mass manufacturing in early 2022.
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