Inflation Reduction Act sparks surge in EV investments

Inflation Reduction Act sparks surge in EV investments

Manufacturers have invested $165B in U.S. EV facilities the past eight years, with 56% occurring post-IRA passage.

A new report by Environmental Defense Fund and WSP USA finds that a year after its passage, the Inflation Reduction Act (IRA) has catalyzed investment and job growth in the EV market.

The report found that:

  • Manufacturers have announced over $165 billion in concrete investment in U.S. EV and EV battery manufacturing facilities in the last eight years. More than half of that (56%) has happened in the last year, since the IRA passage;
  • Manufacturers have announced more than 179,000 new direct U.S. EV-related jobs in the same timeframe, almost half of which were announced last year;
  • The announced investments are expected to create more than 800,000 additional jobs in the broader economy.

The announced EV investments will be in states across the country, although 10 states account for 88% of investments. The states with the greatest levels of investment include:

  • Georgia – $31.5 billion in EV investments;
  • Michigan – $18.9 billion;
  • Tennessee – $18.4 billion.

Georgia’s announced investments have more than doubled since the last version of the report, in March. Michigan and Tennessee have each added billions in additional near-term investments and thousands of jobs since the earlier report. 

Four more states have more than $10 billion each in announced investments – South Carolina, Nevada, Kentucky and North Carolina. Each of those states now also has between 10,000 and 20,000 announced new jobs. 

Ohio, Arizona and Indiana round out the top 10 states with more than $9 billion in announced investments each. Arizona’s announced investments increased by 260 percent from March – from $3.7 billion to $9.7 billion.

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