Federal EV Tax Credit Is Prompting Massive US Investment

Panasonic has started to make moves to dominate the US EV battery plant landscape with partner Tesla. Panasonic has had a supplier relationship with Tesla for over a decade. But as Tesla has evolved, so too is Panasonic, branching out with a $4 billion plant in Kansas that will be the largest in the world, while another plant equal in size and investment in Oklahoma is all but confirmed.

The movers and shakers aren’t only focusing within American borders though. BMW’s Mexican production facility has asked the mothership in Germany to assign it EV production, which would comply with the new legislation. Meanwhile, Nissan recently announced the closure of an engine manufacturing plant that once built engines for Mercedes, with the possibility remaining open for it to be reassigned as an EV manufacturing plant.

We predict this is just the beginning for OEMs. While the new legislation may not have forced them into decisions that weren’t already in the pipeline, it has accelerated the timelines and prompted greater investment in the US.