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North American electric vehicle battery manufacturing capacity to increase by 2030

Plug-in electric vehicles
Climate change has caused countries worldwide to move towards a more sustainable and environmentally friendly environment. The United States is a pioneer in the green transition and is always looking for innovations to make a change.

 

Plug-in electric vehicles (PEV)

Plug-in electric vehicles (PEVs) have become a spearhead in this fight against global warming. The American giant has marked a before and after in the sale of plug-in electric vehicles since 2010. There has been steady growth to reach 4% of the light vehicle market in 2021.

 

“Assessment of light plug-in electric vehicles in the United States, 2010 – 2021”

The “Assessment of Light Plug-in Electric Vehicles in the United States, 2010 – 2021” report, presented by the U.S. Office of Energy Efficiency and Renewable Energy, examined the change in the characteristics of plug-in electric vehicles over these ten years. It evaluated range, energy efficiency, cost, and performance.

This report estimates the miles traveled, electricity consumption, petroleum reduction, and greenhouse gas emissions attributable to electric vehicles. It also explores vehicle manufacturing and battery production, looking at supply chains from battery cells to assembly.

 

Decade of sales

During this decade, more than 2.1 million PEVs have been sold in the United States, of which 1.3 million are all-electric battery electric vehicles (BEVs), and 800,000 plug-in hybrid electric vehicles (PHEVs) can use gasoline. The sales-weighted average range of BEVs reached 290 miles in 2021 and 28 miles for PHEVs.

DOE estimated that electric vehicles had driven 68 billion miles on electricity since 2010, reducing national gasoline consumption by 0.54% in 2021 and 2.5 billion gallons cumulatively through 2021. In 2021, PEVs used 6.1 terawatt-hours of electricity to travel 19.1 billion miles, offsetting 700 million gallons of gasoline.

 

Ecological transition

The transition from hydrocarbon use to electric vehicle implementation reduced consumer fuel costs by $1.3 billion in 2021. Since 2010, 65% of VEPs sold in the United States have been assembled domestically, and more than 110 gigawatt-hours of lithium-ion batteries have been installed in vehicles to date.

 

Battery plants

Now, the country will have new electric vehicle battery plants that will increase North America’s battery manufacturing capacity from 55 gigawatt-hours per year (GWh/year) in 2021 to 998 GWh/year in 2030.

Nearly all battery plant projects will begin production between 2025 and 2030. By 2030, this production capacity will support the manufacturing of 10 to 13 million all-electric vehicles annually. And in a quest to be more efficient and optimize supply chain logistics, they will co-located several of these plants with automobile factories, which will significantly benefit the green transition and supply chain.

The north-south panhandle from Michigan to Alabama will concentrate most of the plant projects. Kentucky, Tennessee, Georgia, and Michigan will see the most remarkable growth in battery manufacturing capacity.

 

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