Washington, D.C. — The Inflation Reduction Act created a robust incentive ecosystem that has sent investments in electric vehicle (EV) manufacturing skyrocketing. A new Center for American Progress issue brief examines how this innovative incentive system encourages the onshoring of manufacturing operations and how these policies are driving an American manufacturing renaissance.
The Inflation Reduction Act’s strategic setup to offer tax incentives at multiple steps in the EV supply chain for domestically produced components will prompt EV adoption and propel the United States to a leadership position on EV manufacturing. To date, the Inflation Reduction Act policies are driving an American manufacturing renaissance, with more than $92 billion in announcement investment and more than 84,000 jobs announced in EV, battery, and critical mineral production.
“The Inflation Reduction Act’s strategic and plentiful incentives are essential to spurring EV and battery manufacturing. By investing and creating a strong American EV manufacturing sector, these policies and incentives are essential to breaking China’s dominance of critical mineral and battery component supply chains,” said Leo Banks, research associate for Domestic Climate Policy at CAP and author of the issue brief.
Read the issue brief: “How Inflation Reduction Act Electric Vehicle Incentives Are Driving a U.S. Manufacturing Renaissance” by Leo Banks
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