Ramping Up: America's Electric Vehicle Sector's Swift Expansion
The United States is making a significant push towards electric vehicle (EV) manufacturing, with global manufacturers committing to substantial investments over the next decade to support the worldwide EV transition.
According to a recent report, manufacturers have announced $165 billion in investments for U.S. EV and EV battery manufacturing facilities. This investment is expected to redefine the automotive landscape, with the combined production capacity of these facilities accounting for 36% of new vehicles sold in 2022. By 2026, U.S. EV manufacturing facilities are projected to produce approximately 4.7 million new passenger vehicles annually.
The report also highlights the creation of 179,300 new U.S. EV-related jobs within the past eight years. An impressive 72% of these new job announcements are attributed to the 21 months since the Bipartisan Infrastructure Law's passage. A remarkable 80% of these investments have materialized in the 21 months subsequent to the Bipartisan Infrastructure Law's enactment.
Michigan and Tennessee have secured $19 billion and $18 billion in investments respectively, ushering in a combined 20,000 new jobs. Georgia leads the way with over $31 billion in investments, resulting in 36,600 jobs.
Federal interventions targeting the onshoring of EV manufacturing supply chains have played an instrumental role in propelling these job announcements. In fact, 47% of new EV job announcements since 2015 stemmed from the last 12 months following the Bipartisan Infrastructure Law's enactment, and 56% of these investments occurred in the past year following the passage of the Innovative Renewable Act (IRA).
The report establishes the United States as a key player in driving the green revolution forward. The unparalleled investments, job creation, and production capacity expansion are expected to solidify the U.S.'s position as a global leader in EV manufacturing.
Moreover, the report does not provide new information about the percentage of job announcements stemming from specific federal policies or laws. However, it does suggest that the current investments, job creation, and production capacity expansion are just the beginning of a larger trend.
Global EV and battery manufacturers have shown their commitment to this trend, with many expressing their intent to invest substantially over the next decade to support the worldwide EV transition. The allure of the Innovative Renewable Act and the Bipartisan Infrastructure Law has attracted EV ecosphere manufacturing facilities to the U.S., further solidifying the country's position in the green revolution.
In conclusion, the U.S. is witnessing a surge in EV manufacturing investments, job creation, and production capacity. This green revolution is expected to redefine the automotive landscape and position the U.S. as a global leader in EV manufacturing.
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