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US to subsidize local production of batteries for electric vehicles and energy storage systems

Chinese rechargeable batteries and batteries may be banned

According to industry sources, the US government intends to subsidize the production in the United States of lithium-ion batteries, lithium iron phosphate (LFP) batteries, and triple materials. This is dictated by the desire to increase independence in the provision of batteries used in electric vehicles and energy storage systems.

rechargeable batteries
The rechargeable batteries

US to subsidize local production of batteries for electric vehicles and energy storage systems

The sources also said that due to tensions between the US and China, the US government concerned about national security is likely to ban the use of Chinese rechargeable cells and batteries in the US. This will enable non-China-based battery manufacturers to establish or expand production lines in the United States.

The Japanese company Panasonic and the South Korean companies LG Energy, SK Innovation, and Samsung SDI already have such factories in the United States. They are expected to direct investment to expand production if they are offered subsidies. 

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