The buzz surrounding the reshoring of manufacturing to the United States is out of touch with reality. This trend was already in motion, driven by the Inflation Reduction Act, which aimed to decrease American dependence on Chinese supply chains. One of the key aspects of this law was to discourage the use of Chinese batteries and invest in cutting-edge technologies like clean energy.
However, with the expiration of EV tax credits on September 30, companies like General Motors and BMW are considering reverting to purchasing cheaper Chinese batteries in the short term. This decision comes as a result of the premature end of federal credits, which helped offset the high cost of EVs, primarily driven by expensive batteries.
General Motors, for instance, will be purchasing lithium iron phosphate (LFP) batteries from CATL, the world’s largest battery manufacturer, for their next-generation Chevy Bolt EV. Despite facing tariffs of around 80%, GM sees the economic sense in sourcing batteries from CATL due to their scale and expertise. Meanwhile, BMW’s battery supplier, Automotive Envision Supply Corporation, has paused construction on two plants in the US and is now importing batteries from China.
Despite the challenges, the EV market is poised for exciting new developments. GM will launch the new Chevy Bolt EV next year, BMW’s Neue Klasse iX3 is on the horizon, and Ford is gearing up for a significant reveal next week. As these new models hit the market, consumer choices in the EV space are expanding, offering more options and driving innovation in the industry.
In other EV news, Shell has announced plans to dismantle its Volta EV chargers by the end of the year to focus on high-speed public fast-charging stations. This move reflects a broader trend in the industry towards consolidation and the development of larger, more powerful charging sites with additional amenities.
Additionally, China’s EV market is experiencing a slowdown following government intervention to curb predatory pricing practices among carmakers. Despite this, the EV landscape is evolving rapidly, with new models on the horizon and a growing focus on sustainable transportation solutions.
As the EV sector continues to evolve, what are you most excited about? Are you looking forward to the new models hitting the market, or do you have a preference for hybrids? Share your thoughts in the comments below.