The U.S. is lagging behind China and the European Union in production of lithium-ion batteries for electric vehicles. Forecasts show the U.S. will fall further behind China by 2025 and remain dependent on imports for more than half of its EV battery needs.
This CPA Policy Paper by CPA Economist Amanda Mayoral evaluates the U.S.’s ability to produce EV batteries. The analysis is split into three components: how well the U.S. manufactures EV’s, how well the U.S. can produce critical minerals, and lastly the paper outlines policies to stimulate U.S. efforts in these critical areas. Overall, while some U.S. companies have made large strides in EV production, a more concerted effort by the U.S. government and private companies is needed to meet the growing demand for EV’s, and maintain the U.S. position as a leader in EV production with a large domestic industry. Other countries have already adopted such strategies and are relatively more prepared.
Click here to read the Policy Paper.