America Is Driving Toward a New Supply Chain Crisis
The US should move quickly to close loopholes that allow an entry point for China, and focus on regaining control of its EV future.
Powering on.
Photographer: Qilai Shen/BloombergUS efforts to catch up in the race to expand EV battery production are promising, yet tax rebates and other incentives have left loopholes for foreign companies to exploit. If Washington wants to ensure the nation doesn’t face continued supply chain crises, just as it did with chips, then it needs to plug these gaps and move more quickly on initiatives to boost technological development.
The US lags China, South Korea and Japan in some of the most important components of lithium-ion battery production. With just 4.4% of global cell capacity, and at single-digit shares of separators, electrolytes, cathodes and anodes, the world’s largest economy is a long way from EV self-sufficiency. The Bipartisan Infrastructure Law passed in 2021 and last year’s Inflation Reduction Act both aim to help America catch up.