LG and Hyundai are following in the footsteps of several other major companies that have recently invested in US-based battery manufacturing facilities. In 2021, Toyota announced plans to build a battery plant in the US as part of a $3.4 billion investment. Additionally, Ultium Cells, a joint venture between General Motors (GM) and LG, secured a $2.5 billion loan from the Energy Department to construct EV battery facilities. Ford has also joined the trend by allocating $3.5 billion for the construction of a lithium iron phosphate battery plant in Michigan. The utilization of lithium iron phosphate technology can lead to more affordable EVs due to its lower cost and ability to tolerate frequent and rapid charging.
The Biden administration’s commitment to bolstering EV and battery manufacturing within the US is a significant driver for these investments. The American Battery Materials Initiative, launched last year, is providing $2.8 billion in grants to 20 companies to encourage domestic battery production. The aim is to reduce dependence on foreign supply chains, which are often perceived as unreliable.
