Monitoring the EV battery manufacturing unit building growth throughout North America
GM’s Ultium cell manufacturing unit in Warren, Ohio. (AP)
The onshoring of battery manufacturing for EVs began as a trickle through the COVID-19 pandemic. Then it became a tsunami.
In 2019, simply two battery factories had been working in america with one other two below building. In the present day there are about 34 battery factories both deliberate, below building or operational within the nation.
U.S. President Joe Biden’s Inflation Discount Act, 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 tasks — to not point out sparking a local weather tech arms race with the EU. Two years later, we’re nonetheless monitoring the fallout.
China has lengthy managed the provision and manufacture of lithium-ion batteries. The nation’s grip on that offer chain started to loosen after automakers, hesitant to repeat the chip scarcity disaster that hampered manufacturing through the pandemic, started promising to construct EVs and batteries nearer to dwelling in 2021.
What has adopted is a wave of automakers and battery makers — overseas 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 motive is 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 objective to make 50% of all new automobile gross sales within the U.S. electrical or hybrid by 2030. Automobiles can 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 vital 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 additionally contains superior manufacturing credit that give the producer a payout from the Treasury. Underneath Part 45X, the manufacturing of battery cells qualify for a credit score of $35 per kilowatt-hour of capability, and the manufacturing of battery modules qualify for $10 per kilowatt-hour. (Battery cells are containers that chemically retailer vitality, and they’re organized into modules. Battery packs could be made up of cells or modules.)
Corporations will also be reimbursed 10% of the prices incurred because of the 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 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.
Outdoors 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 adjustments often, so we have began monitoring these guarantees.
Automakers investing in home battery manufacturing
TechCrunch created a useful map displaying the situation of every battery manufacturing unit plus some fundamental info, 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 seem.
Word: The factories included beneath are producing or will produce battery cells and modules. We didn’t embrace issues like battery supplies manufacturing. Due to this fact, it isn’t an exhaustive checklist of the entire manufacturing going into creating EV batteries in North America.
The place are the EV batteries being produced in North America?
This text was initially printed August 16, 2023 and was final up to date July 20, 2024.
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 entire funding, $700 million was allotted to the buildout of a battery meeting facility in close by Woodruff. The automaker instructed TechCrunch that the beginning of manufacturing is scheduled for the top of 2026, however it hasn’t confirmed which EVs will probably be produced there. BMW’s Spartanburg manufacturing unit is at the moment 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 amenities 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 assist the adoption of EVs for medium- and heavy-duty business 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 Applied sciences, and collectively management the enterprise, which is able to give attention to lithium-iron-phosphate (LFP) battery tech. EVE will function a know-how supplier, contributing its battery cell design and manufacturing experience in trade for 10% of possession.
Ford
In September 2021, Ford created a three way partnership (JV) with South Korean battery maker SK On. The objective of the JV, known as BlueOval SK, is to construct three battery crops in america. Two are positioned in Kentucky; the third manufacturing unit in Tennessee will probably be co-located with a Ford meeting plant, which is able to produce the automaker’s second-generation electrical truck, code named Mission 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 a watch on client demand for EVs.
Ford can 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 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.
Normal Motors
Normal Motors goals to have three whole battery crops within the U.S. by means of its three way partnership with LG Chem, named Ultium Cells. That three way partnership secured in December 2022 a $2.5 billion mortgage from the federal government to assist fund its battery manufacturing unit tasks.
Normal Motors additionally introduced a JV with Samsung SDI in April 2023 to construct a new battery plant in america.
GM is not simply centered on quantity manufacturing. The automaker has additionally partnered with startup SolidEnergy Techniques in 2021 to construct a prototyping facility in Woburn, Massachusetts. The objective is to construct a high-capacity, pre-production lithium-ion battery this 12 months.
GM is engaged on taking management of the battery supplies provide chain, as nicely. The corporate partnered in March 2022 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 take care of LG Chem that might see the automaker investing $19 billion over the subsequent decade to supply vital 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 produce 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 be within the technique 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 accepted plans to arrange a three way partnership to construct a $5 billion battery plant in Bartow County, Georgia. Inside a couple of months, Hyundai and LG Vitality Answer fashioned one other JV to construct a battery cell manufacturing unit close to Savannah, Georgia, that can 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 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 father or mother 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 turned the manufacturing web site for the automaker’s absolutely electrical EQS SUV. The Alabama facility can be assembling the EQE SUV, with the Maybach EQS SUV to comply with this 12 months, in accordance with a spokesperson from the corporate.
Mercedes can be working with Sila, a next-gen battery supplies firm, to include Sila’s battery chemistry into batteries as an choice for consumers 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 concentrating on mid-decade for a range-extended model of the G-class.
Stellantis
Stellantis and Samsung SDI commenced building on their three way partnership 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 construct a second battery manufacturing unit with Samsung, which is able to 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, known as NextStar Vitality, to construct a North America 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 offer 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 mild obligation automobiles yearly. The 4680 cells, which had been designed by Tesla and revealed at Battery Day 2020, are supposed to scale back battery price 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 current report from The Info reveals that Elon Musk could should depend on exterior suppliers for batteries quickly if the 4680 group doesn’t make headway.
Initially of 2023, Tesla additionally laid out plans to develop its current 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 floor 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 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 might make investments billions extra into the manufacturing unit. When it comes on-line, it’ll have 10 manufacturing traces to assist each hybrid and EVs.
Toyota has additionally enlisted the assistance of South Korean battery maker LG Vitality Answer, which is able to solely construct EV batteries for the Japanese automaker out of its Michigan plant (extra on that beneath.)
The Japanese automaker can be constructing a battery lab at its North American analysis and growth headquarters in Michigan, the place it may possibly develop and consider the standard of its EV batteries. The $48 million lab is anticipated 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 meeting manufacturing unit in Charleston, South Carolina, however the automaker doesn’t manufacture batteries or battery elements there. Volvo wouldn’t affirm 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 know-how firm that has promised to construct three U.S. amenities earlier than the top 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 12 months, AESC mentioned it might develop its South Carolina operations, bringing whole funding within the challenge 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 could possibly be used for each EVs and photo voltaic mills, in accordance with a spokesperson from the corporate. Nonetheless, Gotion has confronted pushback from locals. The township’s board voted to reverse a beforehand accepted plan to increase the 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 obtained approval to construct a battery manufacturing manufacturing unit in Buckeye, Arizona. Kore Energy will produce batteries for vitality storage methods and e-mobility merchandise, together with automobiles, vans, buses, boats and trains. The corporate instructed TechCrunch it intends to assist OEMs by manufacturing 30D-compliant batteries, so Kore is working carefully with home companions to line up vital 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 Normal 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 take care of 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 deliberate funding in a brand new manufacturing unit in Arizona to $5.5 billion, a big portion of which will probably be devoted to EV battery manufacturing. The complicated may have two manufacturing amenities — one devoted to cylindrical batteries for EVs and one other for lithium iron phosphate pouch-type batteries for vitality storage methods.
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 father or mother 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 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 because of the incentives within the IRA.
The challenge is anticipated to price 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 increase, backed by BlackRock.
Northvolt instructed TechCrunch it has an “offtake settlement with an anchor buyer,” which means a purchaser for its cells, however wouldn’t disclose the title of the corporate.
The manufacturing unit will even function Revolt, Northvolt’s battery recycling program, which may have a capability of 15GWh. Northvolt instructed 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 Collection 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 can manufacture and provide lithium-ion batteries to EV makers. The ability in De Soto will probably 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 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 a minimum of 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 enterprise will give attention to 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.
