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.
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 Motor America reported a one percent increase in vehicle sales in the United States in August, with a year-to-date result of 526,186 units, while their all-electric car models, the Ioniq 5 and Ioniq 6, saw a significant year-over-year increase in sales, with 5,235 units sold in August, representing 8.0 percent of the total volume.
Daimler Truck, Accelera, and PACCAR have formed a joint venture to advance battery cell production in the United States, focusing on lithium-iron-phosphate (LFP) battery technology for commercial electric trucks, with plans to invest between $2 billion and $3 billion to set up a 21-gigawatt hour (GWh) factory.
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.
General Motors is an undervalued and attractive investment in the electric vehicle market, with plans to expand its EV production capacity and a strong free cash flow guidance, although it faces competition and risks from contract negotiations and a potential U.S. recession.
Honda and LG are building a battery manufacturing plant in Ohio, representing a shift towards transforming the US industrial heartland into the "Silicon Heartland" and reshoring essential technologies, although some projects have faced challenges and not materialized as planned.
Hyundai plans to accelerate production of electric vehicles in Georgia, with the aim of starting in 2024, in order to take advantage of new clean vehicle tax incentives in the US.