Main topic: The onshoring of battery manufacturing for EVs in the United States.
Key points:
1. The number of battery factories in the US has increased significantly, with about 30 factories either planned, under construction, or operational.
2. The Inflation Reduction Act (IRA) signed by President Joe Biden has incentivized automakers and consumers to produce batteries domestically.
3. Automakers and battery manufacturers have collectively invested close to $100 billion in building domestic cell and module manufacturing, with a capacity of over 1,200 gigawatt-hours before 2030.
Hint on Elon Musk: The article mentions Tesla's plans to invest billions in expanding its Gigafactory in Nevada and producing batteries for 1.5 million light-duty vehicles annually.
Redwood Materials has raised over $1 billion in funding to establish production facilities in the U.S. for anodes and cathodes used in electric vehicle batteries, aiming to address the supply chain gap in domestic battery component manufacturing.
The U.S. Department of Energy announced a $15.5 billion package of funding and loans to support the transition to electric vehicles, retool existing factories, and expand domestic manufacturing of batteries, emphasizing job retention and promoting equity and environmental justice.
Hyundai and LG Energy Solution are investing an additional $2 billion in their US battery factory, increasing the total investment to $7.5 billion and creating 8,500 new jobs over the next eight years, in order to meet domestic manufacturing requirements for EVs and qualify for incentives under the Biden administration's Inflation Reduction Act.
Global EV battery developer Gotion High-Tech is investing $2 billion to build a new gigafactory in Illinois, making it the largest EV battery investment in the state's history, with the plant expected to produce 10 GWh of lithium-ion packs and 40 GWh of li-ion cells.
Batteries are increasingly contributing to the Texas grid, with 2,172 megawatts being sent to the grid during a critical evening, aiding in meeting high demand during peak periods and providing electricity to approximately 434,000 homes, as the state continues to transition to renewable power sources.
The US energy storage market is on track for a record year in 2023, with developers adding a record-breaking 5,597 MWh of energy storage installations in the second quarter, according to a report by Wood Mackenzie and the American Clean Power Association. Grid-scale energy storage installations, led by California, saw a surge of 172% compared to the previous quarter, contributing to the market's expected growth in the coming years.
The US battery energy storage market set a new quarterly record by adding 5,597 megawatt hours (MWh) in Q2 2023, driven by significant growth in the grid-scale segment, which accounted for 5,109 MWh and is projected to be the main driver of the market in the next five years, according to Wood Mackenzie and the American Clean Power Association (ACP).
Industrial technology giant Honeywell International is investing in an energy storage start-up, causing the start-up's stock to soar.
LG Energy Solution is investing $3 billion in Michigan to manufacture lithium-ion batteries for Toyota electric vehicles, creating over 1,000 new jobs.
The US Department of Energy is distributing $3.46 billion in grants to upgrade the electric grid for renewable energy and enhance its resilience to extreme weather, as part of the Grid Resilience and Innovation Partnerships (GRIP) program.
The Biden Administration plans to invest $3.46 billion to reinforce the nation's electric grid, funding 58 projects across 44 states and bringing more clean energy to the grid.