US car makers’ EV plans hinge on made-in-America batteries
Live MintCompanies and the U.S. government are shelling out billions of dollars to establish a supply chain for batteries in North America, a manufacturing effort that is critical to the auto industry’s long-range plans to put more electric vehicles on the road. The recently passed Inflation Reduction Act, which provides incentives for North American-built batteries and penalizes car companies that source batteries abroad, is spurring a wave of new projects in the U.S.—from cell-making factories to new ventures to mine the raw materials. The projects will specialize in building up the supply of particular materials and components, with a goal of lowering U.S. battery manufacturers’ reliance on foreign supply chains. The specialized companies that make components such as anodes and cathodes are crucial to the industry’s growth in the U.S., according to Dr. Kang Sun, chief executive of Amprius Technologies, a battery-manufacturing company based in Fremont, Calif. Amprius is one of nearly two dozen U.S. companies awarded millions of dollars in federal funding to help strengthen the domestic supply chain. Amprius is currently looking at potential locations for a new plant as the company seeks to expand production capacity and potentially supply more manufacturers, including companies that make electric vehicles.