are expected to drive production costs down in the coming years, making EVs more affordable and appealing to consumers.
While the $7,500 federal EV tax credit has given many buyers a chance to purchase US EVs at a bargain, the IRA’s guidelines for domestic battery manufacturing may stand to push the industry forward equally well.is expecting to earn as much as $1 billion in tax credits for batteries, and CEO Elon Musk has previously said these credits could become “very significant,” and even “gigantic,” in the years to come.
EV batteries are expected to skyrocket in the US as the country attempts to reduce its supply chain reliance on China. In 2022, companies announced over $73 billion in plans for U.S. battery factories, according to data from Atlas Public Policy. “No one should be surprised that the historic Inflation Reduction Act will lead to an explosion in new EV plants that will showcase how American workers are the finest in the world,” Kikukawa added.