Lifetime customer value runs through the service bay. See how Polk Audiences uses data to deliver the best ROI for… https://t.co/93TmvWGurA
Implications of Inflation Reduction Act on the North American Battery Supply Chain
The Inflation Reduction Act (IRA) strives to shore up the battery supply chain to North America. OEMs who can fulfill the "component" and "critical mineral" requirements will be awarded with USD7500 tax credit. In addition, a production tax credit as large as 10% for the battery mineral and material processing companies and 35USD/kWh for the cell manufacturers is considered in the "advanced manufacturing production credit".
The component criteria, which constitutes half of the USD 7500 credit, as seen in the chart, puts a threshold for the minimum percentage of total value of the battery components including modules, cells and cathode and anode that are produced in North America. Despite a strong localization trend for the cell and module, cathode and especially anode materials, are still predominantly imported from other regions. In particular, in 2029, 100% of the battery components need to be produced in North America to satisfy the IRA requirement whereas the soon-to-be-published battery raw material forecast shows that only 3% of vehicles are expected to use locally produced anode active material.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.
- Fuel For Thought: Detroit Auto Show 2022 - An industry in transition
- Supply Constraints, Lack of Inventory Cap US Light Vehicle Sales in September
- Load-shedding disrupts recovery in South Africa truck and bus assembly
- September 2022 Light Vehicle Production Forecast update
- Major supply chain disruption is behind us but production developments are far from uniform as new headwinds emerge
- Plugging in to the Electrified Future - September 2022
- Fluid production in relation with the increased electrification.
- Tesla loyalty and market share soar, but dominance of EV segment could wane
Load-shedding disrupts recovery in South Africa truck and bus assembly. EVs pose a huge challenge to South Africa,… https://t.co/k2wXhpQVrm
Please join our experts in-person in Paris to gather insight around critical subject matters of enablers for the co… https://t.co/sdeDYl7En4