Inflation Reduction Act could boost U.S. EV battery industry

DETROIT — The 2022 Inflation Reduction Act passed by Congress could even become a playing field between the U.S. and China at the forefront of EV battery development, says Piedmont, N.C.-based Lithium Corp. Chief Commercial Officer Austin Devaney said Monday at the Automotive News Congress. Detroit.

The law provides a $7,500 tax credit for electric vehicles that use domestically extracted or processed battery materials.

The bill could even encourage US battery manufacturers and suppliers to develop and procure batteries made of materials other than lithium, from which most EV batteries are currently made.

The US produces only 1% of the world’s lithium, and many EV batteries are made with lithium sourced from China and Australia.

The bill would ultimately direct $100 billion to the EV battery industry, which could come close to what China would spend, DeVaney said.

Deanna Ahmed, Vice President of Strategy, Policy and Sustainability at Our Next Energy, based in Novi, Michigan, said: sustainable materials.

During the discussion, John Tuccillo, head of global corporate and government affairs at ADS-TEC Energy, a battery storage and charging company based in Nürtingen, Germany, said the U.S. would also need to access the materials. The need for EV batteries to meet carbon-free mobility goals by 2050.

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