Photo by Kumpan Electric on Unsplash
The U.S. Inflation Reduction Act (IRA) is the gift that keeps on giving. Because of the IRA, EV battery materials recycled in the U.S. will automatically qualify for subsidies and will be deemed “American-made.” Therefore, EV brands using U.S.-recycled battery materials for EV production qualify for incentives.
The brilliance will pay dividends for decades as it sets the course for a true circular economy. Maintaining control of the limited supply of lithium through recycling is setting up the U.S. for phenomenal success. This will give the U.S. control of the lithium in batteries constructed in China and recycled in the United States.
Companies are seeking these lucrative incentives and racing to construct those factories. States that have most benefited from these tax-payer incentives are those in the Battery Belt: Kentucky, Michigan, Indiana, Tennessee, Ohio, Georgia, North and South Carolinas, with Texas and Nevada following those major players.
