The rising demand for electric vehicles (EV) coupled with incentives earmarked for the transition to clean energy contained in Inflation Reduction Act (IRA) are spurring the development of new EV battery and EV manufacturing plants throughout the U.S. Today, EV battery manufacturing plants are being constructed in close proximity to EV auto production facilities, many of which are located in the South, Midwest and Northeast. This concentration of EV battery manufacturing plants is creating an emerging economic region known as the “Battery Belt.”
Demand for EVs is expected to account for 45% of the market in 2035, up from a forecast of 32% in 2030. According to S&P Global, by 2030, over one in four new passenger cars sold will be an EV. To keep up with demand for the batteries that power these vehicles, construction of EV battery manufacturing plants continues to ramp up.