Almost every week, another major car announces a multi-billion dollar investment in battery production, and with it, thousands of new American jobs.

Why is it important? Looking at President Beden’s climate agenda, carmakers are rushing to create a domestic battery supply chain to support the release of electric vehicles by the end of the decade.

  • They want to avoid another crisis like the current one Lack of semiconductor forced them to kill car manufacturers because they could not get enough computer chips from Asia.

Driving news; This week, Toyota and Stellantis (the parents of Chrysler and Jeep) joined in a song about plans to build giant battery factories in North America.

  • The movements follow other American battery manufacturers Obligations, by Ford and General Motors, as well as by Korean battery suppliers SK Innovation and LG Chem.
  • For now, these activities are a priority. However, forecasts predict that EV shifts will occur faster as more plug-in models are introduced and governments increase standards for zero-emission vehicles to combat climate change.
  • When those pieces fall into place, world car manufacturers may be in a war to protect the batteries and other materials needed to produce them.

In numbers – Americans buy about 17 million vehicles a year, and Biden’s goal is to make half of them electric by 2030.

  • Christine Dizik, vice president of the Automotive Research Center, said each 300-watt battery plant is enough to power 300,000 vehicles.
  • That means it takes at least 30 battery manufacturers – hiring about 2,000 workers each – to meet Biden’s 50% goal (half of the cars sold in the United States are not imported).
  • There are a total of 19 existing or planned cell factories in the United States, but not all of them are at the top of Tesla in Nevada.

Yes, but A.D. By 2030, the United States is still expected to be 14% below the global battery capacity, compared to 66% of China.

  • And while billions of dollars are being spent on battery cell production, experts say the industry is not doing enough to prepare for the historic transformation of electrification.

Among those who sound the alarm In a recent podcast, Tesla co-founder JB Strabel said that cars’ desire to go for electricity ignored the complexities of Evin’s product.

  • “I don’t think they did it all [on] Strubel, general manager of battery recycling and cathode manufacturer Redwood, includes what goes on and off the supply chain, literally going back to the mines.
  • You need to do that, otherwise you know, you didn’t really solve it.
  • It feels like a huge flight to me. All these people say, ‘Oh, this is great. We will all go to that new place.

Large picture: By 2021, cars, especially in North America and Europe, have jumped on the bandwagon of electric vehicles.

  • Globally, the industry plans to spend 40 percent of last year on $ 330 billion on EVs, according to Alexis, a five-year caregiver.
  • Instead of importing battery cells from Asia, they are trying to build them at home, said John Lower, director of automotive and industrial operations at the consulting firm.
  • “Five years ago, it seemed natural for the industry to buy batteries – like seats, electrical components and mufflers.”

What to look for: When battery-powered factories are being built at high speeds, the big question is how will the United States fill other gaps in the supply chain.