The sudden and unprecedented shift towards onshoring battery manufacturing for electric vehicles (EVs) amidst the COVID-19 pandemic? Then it become a tsunami.
By 2019, there were just two operational battery factories in the United States, with an additional two under construction. Currently, a total of around 34 battery manufacturing facilities are either in operation, under construction, or planned within the country.
U.S. While President Joe Biden’s signing of regulations on August 16, 2022, may not have served as the primary impetus for the burgeoning onshoring trend in battery manufacturing units, it is possible that his administration’s policies played a role in fostering an environment conducive to such development. Despite this, it played a crucial role in opening the floodgates and accelerating the pace of manufacturing operations – no less. The repercussions from that pivotal moment continue to reverberate, a testament to the far-reaching consequences of our actions.
China has long dominated the production and supply of lithium-ion batteries. As the pandemic-induced chip scarcity subsided, a shift took hold within the nation’s automotive sector, with manufacturers now eager to diversify their production bases by building electric vehicles (EVs) and batteries closer to home.
As the electric vehicle landscape continues to evolve, a significant shift has taken place: numerous global and domestic automotive companies have committed to delivering North America-made batteries ahead of the 2030 deadline. As manufacturers’ strategies and battery suppliers’ blueprints unfold.
IRA carrots and sticks
What’s driving the significant investment in onshoring electric vehicle (EV) battery manufacturing is the urgent need to decarbonize transportation and reduce reliance on foreign supply chains. Here’s the improved text:
One purpose is that the IRA is replete with incentives for automakers and shoppers to supply domestically – a concerted effort to reduce the U.S.’s reliance on China for batteries, thereby helping President Biden achieve his objective of making 50% of all new automobile sales within the U.S. electrical or hybrid by 2030. Automotive companies can qualify for the full $7,500 electric vehicle (EV) tax credit if their vehicles meet specific guidelines regarding battery sourcing and manufacturing.
By 2024, manufacturers must produce or assemble at least 60% of the value of battery components in North America to claim a tax credit of up to $3,750. By that time, that proportion will have escalated to a full 100%. To secure the remainder, at least 50 percent of the value of critical materials must come from the United States. What will be the world’s first free commerce settlement nation in 2024? By 2025, the proportion of electric vehicles will surge to 60%; this figure will rise further to 70% by 2026, before reaching a remarkable 80% mark in 2027 and beyond.
The Internal Revenue Assistance program also includes superior manufacturing credits, which provide producers with a payment from the Treasury Department. Manufacturers of battery cells are eligible to receive a credit of $35 per kilowatt-hour of capacity, while those producing battery modules can claim a credit of $10 per kilowatt-hour of capability. Battery cells are vessels that store chemical energy, assembled into modules for efficient use. Battery packs are typically composed of individual cells or modules.
Firms are eligible to receive reimbursement of up to 10% of production costs associated with the manufacture of electrode energy storage components, including cathodes and anodes. During discharge, the cathode absorbs lithium ions; conversely, during charging, the anode releases these ions. These components are essential building blocks of cells, potentially comprising materials such as graphite, silicon, zinc, aluminum, magnesium, nickel, and cobalt.
Automakers and battery producers have collectively committed to investing nearly $112 billion in building domestic cell and module manufacturing facilities. These companies pledge to deliver an annual capacity of approximately 1,200 gigawatt-hours by 2030, assuming each facility operates at maximum capacity. According to Tesla’s earlier estimates, approximately 100 GWh of battery capacity could power around 1.5 million electric vehicles. This means that roughly sufficient batteries exist for energizing nearly 18 million EVs.
The Inflation Reduction Act (IRA) has catalyzed over $245 billion in private investment into clean energy and technology manufacturing, according to Atlas Public Policy.
Domestic battery production financing initiatives. Given that Canada makes adjustments recurrently, we have started tracking these assurances regularly.
As the demand for eco-friendly living solutions continues to surge, automakers are making a strategic pivot by investing in home battery manufacturing.
TechCrunch has crafted a valuable resource: an interactive map that provides a comprehensive overview of every battery manufacturing facility, along with essential details such as capacity and strategic location. For those seeking additional information and background, please refer to the comprehensive list below, detailing each manufacturer’s intentional or de facto battery factories. To view information about a specific location, simply click on the corresponding icon on the map.
Factories listed below manufacture or will manufacture battery cells and modules. We failed to address critical concerns surrounding battery supply chain management. Despite this, it is not a comprehensive inventory of the entirety of manufacturing processes involved in producing EV batteries in North America.
Click to learn more about each production facility, and discover additional insights into their operations.
BMW
In October 2022, a significant shift in funding patterns emerged within the United States. That facility in Spartanburg, South Carolina may soon be prepared to manufacture electric vehicles. Out of the total allocation of funds, approximately $700 million has been designated for the construction of a state-of-the-art battery manufacturing facility in nearby Woodruff. The manufacturer told TechCrunch that production is set to commence in 2026, though it has yet to reveal which electric vehicles will roll off its lines. BMW’s Spartanburg manufacturing facility is currently responsible for producing the company’s sports utility vehicles (SUVs) and crossovers, including the X3, X4, X5, X6, X7, and XM models.
BMW has forged a partnership with battery manufacturer AESC to invest further in a battery cell plant located in Florence, South Carolina, with more information available under AESC. The AESC plant will manufacture BMW’s innovative sixth-generation spherical lithium-ion battery cells, which will power the electric vehicles rolling off the assembly lines at Plant Spartanburg. Groundbreaking ceremonies for both the Woodruff and Florence amenities took place in June.
Daimler, Paccar, Accelera, EVE Vitality
In September 2023, Daimler Truck and Paccar announced a strategic three-way partnership with energy technology company Accelera and Chinese battery manufacturer EVE Energy to establish a battery cell production facility that will accelerate the adoption of electric vehicles (EVs) for medium- and heavy-duty industrial transportation. Businesses mentioned in January 2024 as selecting a website located in Mississippi.
Accelerating innovation, Accelera, Daimler, and Paccar will jointly own 30% each of the newly formed entity, a mixed firm that will focus exclusively on developing lithium-iron-phosphate (LFP) battery technology, collectively managing the venture to drive industry-leading advancements. EVE will operate as a knowledge provider, leveraging its expertise in battery cell design and manufacturing to secure 10% equity stake in the venture.
Ford
In September 2021, our joint venture with South Korean battery maker SK On was established. The primary goal of the joint venture, dubbed BlueOval SK, is to establish three battery manufacturing facilities within the United States. Located in Kentucky are two of these units, while a third, Tennessee-based facility will be situated alongside a Ford manufacturing plant capable of producing the company’s second-generation electric vehicle, codenamed “Undertaking T3”.
Ford and SK On have secured a $9.2 billion mortgage from the US government to finance their joint venture electric vehicle battery plant in the United States. The Division of Vitality allocates resources to support the financing of the construction of three new battery factories in Kentucky and Tennessee. As a new Kentucky crop is set to launch production by 2025, Ford’s second plant has temporarily halted manufacturing due to ongoing scrutiny of consumer demand for electric vehicles.
Ford can be in Michigan. CATL, a leading Chinese manufacturer of lithium-ion batteries for electric vehicles, is partnering with Ford as a strategic service provider under a contractual agreement. While Ford’s partnership with the Chinese battery company has earned it criticism from some Home Republicans, it’s possible that this stance could shift in the future. Ford opted to significantly scale back investment in its Michigan facility, slashing planned spending from $3.5 billion to $2 billion due to unexpectedly sluggish demand for electric vehicles (EVs), resulting in a whopping 43% reduction in production capacity and a subsequent decline in predicted employment opportunities.
Normal Motors
General Motors aims to have at least three entire battery cell manufacturing plants within the United States. Through a strategic three-way partnership with LG Chem, called Ultium Cells. The trio of partners successfully negotiated a $2.5 billion federal mortgage in December 2022, which will aid in funding their ambitious battery manufacturing initiatives.
General Motors has announced plans in April 2023 to establish a new facility.
While General Motors doesn’t solely focus on mass production. The company expanded its operations in 2021 by establishing a state-of-the-art prototyping facility in Woburn, Massachusetts. Our goal is to develop and manufacture a high-capacity, pre-production lithium-ion battery within the next 12-month timeframe.
General Motors is actively pursuing a comprehensive overhaul of its battery supply chain management. The corporation partnered in March 2022 with another company to build a $400 million battery manufacturing facility in Canada. The plant will develop capabilities to generate cathode-based energy sources. General Motors has sealed a deal with LG Chem in February 2024, committing to invest approximately $19 billion over the next decade to secure crucial components from LG Chem’s Tennessee facility.
Honda
In August 2022, Honda announced a partnership with LG Vitality Options to supply the North American market with “pouch sort” battery cells. The power in Ohio will manufacture each cell and module independently.
The automaker has also made significant progress in securing sustainable battery resource recycling channels, partnering with reputable firms such as Ascend Performance Materials, Circulor, and POSCO Holdings.
Honda’s existing engine plant in Anna, Ohio, has the potential to be repurposed to manufacture casings for battery modules, thereby supporting the production of electric vehicles (EVs) from Honda and Acura brands manufactured at the same Ohio site.
Hyundai
By mid-April 2023, plans were underway to form a strategic three-way partnership aimed at developing a state-of-the-art $5 billion battery manufacturing facility in Bartow County, Georgia. Within a remarkably short timeframe, Hyundai and LG Energy Solution collaborated to establish a cutting-edge battery cell manufacturing facility near Savannah, Georgia, designed to support the production of approximately 300,000 electric vehicles annually once the plant achieves full-scale manufacturing capabilities. The South Korean automaker has revealed that its components and repair subsidiary, Hyundai Mobis, will manufacture battery packs using cells sourced from the new plant.
Hyundai Mobis announced plans in 2022 to build a new facility in Alabama, which will have the capacity to manufacture over 200,000 EV batteries annually for its parent company once the plant is fully operational.
Mercedes-Benz
Mercedes-Benz inaugurated a state-of-the-art battery production facility at its existing manufacturing complex in Alabama in 2022. In the summer season, the plant also served as a production site for the automaker’s fully electric EQS SUV. Mercedes-Benz has confirmed that its Alabama facility will begin assembling the EQE SUV, with the luxurious Maybach EQS SUV set to follow suit within the next 12 months, according to a company spokesperson.
Mercedes is reportedly collaborating with a cutting-edge battery supplier, incorporating Sila’s innovative battery chemistry into the batteries of its forthcoming G-Class models, providing a potential solution for consumers. Can Sila successfully replace graphite in battery cells using silicon, which currently lies within their capabilities to scale up? Businesses are reportedly targeting mid-decade for the introduction of a range-extended variant of the G-class.
Stellantis
Stellantis and Samsung SDI have initiated construction of their joint venture electric vehicle battery manufacturing facility in Indiana, following a groundbreaking ceremony in March 2023. The manufacturing unit will produce both lithium-ion cells and modules separately.
The corporation has announced a partnership with Samsung, set to launch in early 2027 following its introduction in July 2023. In October,.
Stellantis, a multinational automaker comprising Alfa Romeo, Chrysler, Jeep, and Ram brands, further solidified its commitment to the energy sector by forming a three-way partnership with LG Energy Solution in 2021, dubbed NextStar Energy, to construct a North America manufacturing facility capable of producing 40 gigawatt-hours annually. In March 2022, two firms reached a binding agreement to establish a significant presence (valued at CAD $5 billion) by investing $3.7 billion in supplying cells and modules at a production facility within their existing operations.
Tesla
Since opening its doors at Gigafactory Nevada in 2017, Tesla has manufactured more than 7.3 billion battery cells and a cumulative total of approximately 1.5 million battery packs, boasting an annual capacity of around 39 gigawatt-hours (GWh), according to Panasonic’s estimates.
In 2023, plans were unveiled to invest heavily in Nevada’s manufacturing facility, incorporating a state-of-the-art 4680 cell production unit capable of supplying enough batteries to power 1.5 million light-duty vehicles annually. Tesla’s 4680 cells, unveiled at Battery Day 2020, aim to slash battery costs by more than half. Despite efforts spanning several years, Tesla continues to face challenges in scaling up cell production for mass manufacture. A recent report suggests that if Elon Musk’s 4680 battery production team fails to progress, he may need to rely heavily on external suppliers for battery supplies.
Initially in 2023, Tesla announced its intention to expand into battery cell testing and manufacturing of cathodes and drive components, but has not disclosed further details regarding these plans.
In May 2023, the first lithium refinery in Texas was completed, marking another significant step in the United States’ efforts to become more self-sufficient in its supply chain? Automakers set out to refine their own lithium supplies. The auto manufacturer is reportedly considering a $375 million investment in its Corpus Christi production facility, which could potentially boast a 50-gigawatt-hour (GWh) capacity, with operations set to begin in 2025.
Toyota
Toyota introduces its deliberate battery cell-making capabilities in 2021, taking control of production for both individual cells and modules within its company framework. In late October 2023, Toyota announced its intention to enter the electric vehicle manufacturing market. When launched online, the company will feature 10 manufacturing lines dedicated to producing hybrid and electric vehicles.
Toyota has also partnered with South Korea-based LG Energy Solution, enabling the construction of complete EV batteries at its Michigan plant.
The Japanese automaker is reportedly building a battery laboratory at its North American research and development headquarters in Michigan, where it will be able to test and refine the quality of its electric vehicle (EV) batteries. The $48-million laboratory is expected to begin operations in 2025, ultimately supporting the corporation’s manufacturing efforts at facilities in North Carolina and Kentucky.
Volkswagen
In July 2022, Volkswagen established a standalone battery company, PowerCo SE, to manufacture batteries for its forthcoming electric vehicles. Since its inception, the corporation has opted for a strategy of establishing three cellular manufacturing facilities: two in Europe (in Salzgitter, Germany, and Valencia, Spain) and one in North America (located at St. Thomas, Canada). PowerCo anticipates generating an annual revenue exceeding €20 billion by 2030.
While Volkswagen’s Canadian-based battery manufacturing facility doesn’t physically sit within the United States, it still deserves consideration for Inflation Reduction Act benefits.
Volvo
While Volvo does have operations in Charleston, South Carolina, its facility is not involved in the production of batteries or battery components. Volvo remains tight-lipped about its potential future plans for battery manufacturing in North America.
Battery manufacturers expanding presence in North America as demand for electric vehicles surges.
AESC
AESC, previously known as Envision AESC, is a prominent Japanese company specializing in battery technology expertise. It has pledged to establish three U.S.-based facilities. amenities that date back to the early years of the previous decade. The corporation’s Tennessee plant has been in continuous operation for some time now. AES Crop Management’s operations in Kentucky and South Carolina experienced significant growth, with the former reaching a milestone in August 2022 and the latter achieving this distinction in June 2023. According to a statement from AESC, the company is considering expanding its South Carolina operations, which could potentially attract up to $3.12 billion in investment funding.
Gotion
Gotion Inc., a subsidiary of China-based Gotion High-Tech, announced plans to establish a battery manufacturing facility in Michigan, with headquarters in Silicon Valley. The manufacturing facility, having secured $175 million in state funding in April 2023, endeavored to produce distinct cathodes and anodes tailored for both electric vehicles and solar turbines, according to a company representative. Despite this, Gotion has faced resistance from local communities. The township’s board reversed its earlier decision to boost the town’s water supply in response to the specific needs of the manufacturing facility. As spring unfolds in March, a journey towards the city continues unabated.
While the Michigan manufacturing facility remains operational, Gotion is currently developing another facility in the region. By September 2023, Gotion had announced its intentions to establish a second battery production facility in Illinois, further expanding its manufacturing capabilities. The corporation is poised to reap the benefits of significant state incentives, totalling $536 million, while also securing tax advantages worth $213 million over three decades, provided it commits an investment of at least $1.9 billion and creates a substantial number of high-paying job opportunities.
Kore Energy
A leading battery cell and module developer has secured the necessary approvals to establish a state-of-the-art battery manufacturing facility in Buckeye, Arizona. Korean energy company Kore Energy is set to manufacture batteries for a range of applications, including vital energy storage systems and electric mobility products such as cars, vans, buses, boats, and trains. Kore’s collaboration with original equipment manufacturers (OEMs) is expected to benefit from the company’s decision to manufacture 30D-compliant batteries, which will enable OEMs to meet regulatory requirements. To ensure a seamless supply chain, Kore is diligently working with domestic suppliers to secure critical components onshore.
LG Vitality Resolution
South Korea supplies electric vehicle (EV) batteries to major automotive companies such as Tesla, Lucid Motors, Toyota, and Proterra. The battery manufacturer collaborates on battery factory construction projects with leading automotive companies, including General Motors, Honda, Hyundai, and Stellantis.
In early 2023, LG announced plans to potentially quintuple the capacity of its existing lithium-ion cell plant in Michigan, which was established in 2010, as part of a broader expansion at LG’s Holland manufacturing facility; this unit specializes in producing large polymer battery cells, or pouch-style cells, and packs for electric vehicles. The enhanced plant is expected to yield novel, elongated cell designs for batteries, reportedly enabling increased range, greater storage capacity, and a more streamlined pack architecture, according to LG.
The company plans to establish a new manufacturing facility in Arizona, with a substantial portion of the $5.5 billion investment allocated to producing electric vehicle batteries. Will the company focus on developing separate technologies – one dedicated to cylindrical batteries for electric vehicles (EVs) and another for lithium iron phosphate pouch-type batteries for energy storage systems?
By August 2023, the company has outlined ambitious plans to invest up to $17 billion by 2025 in building a total of eight manufacturing facilities, two of which are currently operational, boasting a combined capacity exceeding 300 gigawatt-hours. Despite LG’s lack of transparency, details about each facility remain unclear.
LG’s guardian company, LG Chem, plans to commission an individual Tennessee-based plant for the production of cathode materials in December 2023. LG aims to invest $3.2 billion in the facility, targeting the production of 60,000 tonnes of cathode materials at its peak capacity. General Motors Corporation has finalized a deal to invest a substantial $19 billion in the venture.
Northvolt
Northvolt, a Swedish developer and manufacturer of lithium-ion batteries, is poised to break ground on its inaugural gigafactory in North America, with the announcement made public in late September 2023. The corporation had been weighing options for its next gigafactory, with North America and Germany as potential destinations; however, the latter was ultimately ruled out due to the attractive incentives offered by the Infrastructure Resilience Act.
The venture is expected to cost roughly over $7 billion, with Northvolt investing approximately $3.2 billion and a combination of local and federal government entities committing around $4.2 billion. The $3 billion plus enlargement is once again off the back of a major investor, this time backed by BlackRock.
Northvolt disclosed to TechCrunch that it has entered into an offtake agreement with an unnamed anchor buyer, securing a significant customer for its battery cells, but refused to reveal the identity of the partner.
The manufacturing unit will also host Revolt, Northvolt’s battery recycling programme, boasting a capacity of 15GWh. By 2030, Northvolt aims to recycle at least 50% of the raw materials required for battery production.
Our Subsequent Vitality
Our subsequent energy (ONE), a battery startup, unveiled plans in October 2022 to establish a gigafactory in Michigan focused on the production of lithium-iron-phosphate cells, commonly known as LFP batteries. With a $200 million grant from the state of Michigan supporting its development, the facility will specialize in raw material refining, producing cathode components, and assembling cells and batteries.
By the end of February 2023, the company took steps to finalize its preparation for mass production.
Panasonic
Panasonic has announced plans to build a new $4 billion manufacturing facility in Kansas, with the potential to become the world’s largest lithium-ion battery production site, serving electric vehicle manufacturers. Panasonic is set to establish its second electric vehicle (EV) battery manufacturing facility in the United States, with a location in De Soto. After the joint venture between Panasonic and North America, known as Panasonic Vitality of North America (PENA), located within Tesla’s Nevada Gigafactory in Sparks, Nevada, where it supplies the electric vehicle manufacturer with batteries.
Panasonic revealed in June 2023 a plan to augment production at its North American Energy Company (PENA) facility by 10 percent within the next three-year period. By 2030, the Japanese company hinted at building a facility in North America to manufacture Tesla’s 4680 battery cells on a similar timeline. Despite this, Panasonic’s CEO Yuki Kusumi revealed plans to construct an additional battery manufacturing facility in January.
SK Battery America
South Korea’s leading battery manufacturer, SK On, has formed strategic partnerships with automotive giants Ford and Hyundai to co-develop innovative battery solutions. The corporate’s U.S. SK Battery America pursues its own distinct objectives.
SK Battery America has committed a significant investment of $2.6 billion to establish two substantial manufacturing facilities in Jackson County, Georgia, with commercial-scale production commencing in early 2022.
