In a recent shift in the electric vehicle (EV) industry, the planned annual battery production capacity in North America is projected to ramp up more than tenfold between early 2021 and 2030.

According to a report by the U.S. Department of Energy’s Argonne National Laboratory, the annual lithium-ion battery cell production capacity in North America is anticipated to reach around 1,400 gigawatt-hours (GWh) by 2030. This marks a strong increase from the 120 GWh projected in January 2021.

In terms of how influential this would be, this surge in capacity would be sufficient to power about 14 million light-duty EVs annually, marking a major boost for the region’s EV manufacturing capabilities.

Regarding the source of this growth, the rapid growth in planned capacity is largely attributed to federal incentives introduced by the Biden administration. The 2021 Bipartisan Infrastructure Law and the 2022 Inflation Reduction Act have been pivotal in spurring investments in the EV supply chain.

As a result, the planned battery cell capacity for 2030 rose from 298 GWh to 587 GWh between November 2021 and August 2022. The impact was even more pronounced after the Inflation Reduction Act, with capacity plans doubling between August 2022 and July 2023.

Several states are poised to become major players in battery production. Michigan leads with a projected capacity of 166 GWh by 2030, followed closely by Nevada, Georgia, Kentucky, and Tennessee, each expected to exceed 100 GWh of capacity. Currently, Nevada holds the top spot for existing capacity, largely due to the 38-GWh factory jointly operated by Panasonic Energy and Tesla.

Interestingly, Canada is emerging as a crucial part of North America’s EV supply chain. Ontario is projected to have 136 GWh of lithium-ion cell capacity by 2030, surpassing most U.S. states.

However, the pace of growth has slowed in 2024, mirroring a deceleration in U.S. EV sales. This has led some automakers to reassess their electrification strategies, with companies like GM delaying certain EV production plans.

Despite these challenges, the overall trajectory points to a transformed North American EV battery landscape by 2030. As production capacity expands, it’s expected to significantly boost the region’s ability to meet growing demand for electric vehicles while reducing dependence on overseas supply chains.

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With this dramatic increase in battery production capacity, it spotlights North America’s devotion to EV technology and highlights the impact of government policies in shaping the future of the automotive landscape. With this in mind, the transition to electric mobility is further accelerated.

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