Biden’s Inflation Reduction Act Pays Automotive Battery Plants $35 For Every kWh Produced
The discussions around the so-called Inflation Reduction Act have been centered so far on the EV tax credits. Besides that, the legislation brings huge incentives for parts and materials that go into batteries, solar, and wind energy products. EV battery makers are the big winners here, with $35/kWh tax credits.
This explains why so many carmakers have lately announced new battery factories in the U.S. Ford, General Motors, and Tesla all started partnerships with battery companies to bring production to the U.S. According to Section 45X of the IRA, which covers the “Advanced manufacturing production credit,” battery cell manufacturers will get a $35 credit for every kWh of battery produced in the U.S.