IRA supercharges USA’s gigafactory capacity pipeline as it overtakes Europe for first time
The US battery capacity pipeline has overtaken Europe’s for the first time, as the Inflation Reduction Act (IRA) accelerates the country’s clean energy transition.
A total of 436 gigawatt hours (GWh) of battery capacity has been added to the US pipeline since the IRA was passed, a jump of 57.9%, according toBenchmark’s Gigafactory Assessment. The USA’s battery capacity pipeline to 2031 now sits at 1,190 GWh. In comparison, Europe’s battery capacity pipeline has increased only 3%, or 35 GWh, over the same period.
“Since the inception of the IRA last year, the US battery cell production capacity pipeline has experienced a growth rate significantly higher than Europe, and even China, highlighting the attraction the country now has for cell producers,” said Evan Hartley, an analyst at Benchmark.
“The majority of announcements are coming from globallyrenowned automakers and Tier 1 cell producersseeking to establish and develop their place in the North American EV supply chain, however, the IRA has also prompted capacity commitments from numerous smaller producers and start ups,” Hartley said.
The US had a total of 22 announced gigafactory projects until August last year. That number has now grown to 34 as of May as the country added 12 new projects to its pipeline.
In contrast, Europe added only three new projects to bring its gigafactory pipeline to 34, matching that of the US.
However, both the USA and Europe continue to trail China’s capacity expansions. China announced 41 gigafactories during the period to bring its latest tally to 283.
Benchmark’s Battery Gigafactories USA conference takes place this week in Washington DC on 8-9 June –register hereand secure your place from the last remaining tickets.
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