EV Battery Factory Construction Boom in North America - Tracking Progress

The Rapid Growth of Domestic EV Battery Production

The return of battery manufacturing to the United States began slowly during the COVID-19 pandemic. Subsequently, it has escalated into a significant surge in activity.

In 2019, the U.S. hosted only two operational battery manufacturing plants, with an additional two under development. Currently, approximately 34 battery factories are in various stages – planned, under construction, or actively operating – within the nation.

The Impact of the Inflation Reduction Act

While not the sole instigator, the Inflation Reduction Act (IRA), signed into law on August 16, 2022, by former U.S. President Joe Biden, undeniably amplified the trend of onshoring battery production. It also initiated a competitive dynamic in climate technology with the European Union.

Even with ongoing uncertainty surrounding the IRA’s long-term viability, its effects are still being observed after two and a half years.

A freeze on IRA funding disbursements was issued by President Donald Trump in January 2025. However, a substantial portion of these funds had already been allocated to manufacturers. This directive has not, however, halted the considerable flow of private sector investment into clean energy initiatives.

Securing the Battery Supply Chain

Regardless of political preferences, the United States requires greater autonomy over its battery supply chain, lessening its reliance on China. This need is especially pertinent given the existing 10% tariffs imposed on Chinese imports by the Trump administration.

Automakers, having experienced the disruptions caused by the chip shortage during the COVID-19 pandemic, are determined to avoid similar vulnerabilities in the future.

Consequently, a multitude of automakers and battery manufacturers – both international and domestic – have committed to producing batteries within North America by the year 2030. (Detailed plans from each automaker can be found here, and battery maker plans are available here.)

• The initial phase saw limited activity.
• This quickly evolved into substantial investment.
• The IRA accelerated the pace of development.

The Impact of the Inflation Reduction Act on EV Battery Production

Significant investment is being directed towards establishing domestic electric vehicle (EV) battery production capabilities. This surge is largely attributable to the incentives embedded within the Inflation Reduction Act (IRA), designed to encourage both automakers and consumers to prioritize domestically produced components. A key objective is to diminish the United States’ dependence on China for battery supplies, while simultaneously advancing President Biden’s ambition to have 50% of all new vehicle sales be electric or hybrid by the year 2030.

Even with a potential shift in policy under a new administration, electric vehicles remain eligible for the full $7,500 EV tax credit, provided they adhere to specific battery sourcing and production criteria. The IRA stipulations mandate that 60% of the battery component value must originate from North American production or assembly in 2024 to qualify for $3,750 of the credit.

This required percentage is scheduled to escalate to 100% beginning in 2029. Furthermore, to access the remaining $3,750 portion of the tax credit, 50% of the value of critical materials utilized in battery production must be sourced from either the U.S. or a country with a free trade agreement with the U.S. in 2024.

Subsequent increases are planned for this critical materials sourcing requirement, reaching 60%, 70%, and 80% for vehicles manufactured in 2025, 2026, and 2027 onwards, respectively. While the advanced manufacturing credits, offering direct payouts from the Treasury to producers, face potential elimination, understanding their previous operation remains valuable.

Section 45X of the IRA previously provided a credit of $35 for each kilowatt-hour of battery cell production capacity, and $10 per kilowatt-hour for battery module production. Battery cells, which are the fundamental units for storing chemical energy, are assembled into modules, and these modules can then form complete battery packs.

Companies were also eligible for reimbursement covering 10% of the expenses incurred during the production of electrode active materials, encompassing both the cathode and anode. The cathode facilitates lithium storage during battery discharge, while the anode stores lithium during charging. Both are essential cell components and can incorporate materials like graphite, silicon, zinc, aluminum, magnesium, nickel, and cobalt.

Automakers and battery manufacturers have collectively committed approximately $112 billion in investments towards establishing domestic cell and module manufacturing facilities. These investments are projected to yield a combined annual production capacity of nearly 1,200 gigawatt-hours by 2030, assuming all factories achieve their maximum output.

This capacity is estimated to be sufficient for powering around 18 million EVs, based on Tesla’s earlier estimates suggesting that 100 GWh of capacity can support approximately 1.5 million electric vehicles. Beyond the battery sector, the IRA has catalyzed a total of $245 billion in private investment across the broader clean energy and technology manufacturing landscape, as tracked by Atlas Public Policy’s Clean Economy Tracker.

The landscape of investment in battery production within the U.S. and Canada is dynamic, necessitating ongoing monitoring of these commitments and developments.

Automakers investing in domestic battery production

A comprehensive map, created by TechCrunch, details the locations of current and planned battery factories, alongside key capacity information. Further details and contextual insights regarding each manufacturer’s battery facilities – both operational and in development – are available below. Alternatively, clicking a location on the map reveals a pop-up window with more specific data.

Note: This overview focuses on facilities producing battery cells and modules. Production of battery materials is excluded, meaning this is not a fully exhaustive list of all activities contributing to EV battery creation in North America.

Where are EV batteries being manufactured in North America?

A map illustrating investment by automakers and battery manufacturers in battery cell and module production for electric vehicles.
Hover over the green dots for detailed information about each factory.

This article was first published on August 16, 2023, and was last revised on February 6, 2025.

BMW

BMW announced a substantial $1.7 billion investment in the U.S. in October 2022, preparing its Spartanburg, South Carolina, plant for EV production. $700 million of this funding was designated for constructing a battery assembly facility in the nearby town of Woodruff. The company indicated to TechCrunch that production is anticipated to commence by the end of 2026, though the specific EV models to be built there remain unconfirmed. BMW’s Spartanburg facility currently manufactures its range of sports utility vehicles and crossovers, including the X3, X4, X5, X6, X7 and XM.

Furthermore, BMW has partnered with battery manufacturer AESC (formerly Envision AESC) to co-invest in a battery cell plant located in Florence, South Carolina. This AESC plant will produce BMW’s next-generation, sixth-generation round lithium-ion battery cells specifically for EVs assembled at Plant Spartanburg. Construction began simultaneously at both the Woodruff and Florence sites in June 2024.

Daimler, Paccar, Accelera, EVE Energy

In September 2023, Daimler Truck and Paccar revealed a joint venture alongside energy technology firm Accelera and Chinese battery producer EVE Energy, aimed at establishing a battery cell production plant to facilitate the adoption of electric vehicles in the medium- and heavy-duty commercial transportation sectors. The companies announced in January 2024 that they had selected a location in Mississippi.

Accelera, Daimler, and Paccar will each hold a 30% stake in the newly formed company, Amplify Cell Technologies, and will jointly manage its operations, focusing on lithium-iron-phosphate (LFP) battery technology. EVE Energy will contribute its battery cell design and manufacturing expertise as a technology provider, receiving a 10% ownership share.

Ford

Ford established a joint venture (JV) with South Korean battery maker SK On in September 2021. The purpose of BlueOval SK, as the JV is named, is to construct three battery plants within the United States. Two of these facilities are situated in Kentucky, while the third, located in Tennessee, will be integrated with a Ford assembly plant, which will produce the automaker’s next-generation electric truck, internally designated Project T3.

Ford and SK On have secured a $9.2 billion loan from the U.S. Department of Energy to support the construction of the three battery plants in Kentucky and Tennessee. While production at one of the Kentucky plants is scheduled to begin in 2025, the start of production at the second plant has been temporarily paused as Ford monitors consumer demand for EVs.

Additionally, Ford is constructing a lithium-iron-phosphate plant in Michigan. Chinese battery manufacturer CATL is providing its technology to Ford on a contractual, service-based arrangement. This arrangement may evolve, however, as Ford has faced scrutiny from House Republicans investigating the automaker’s relationship with the Chinese battery company. In November 2023, Ford decided to reduce investment in its Michigan plant from $3.5 billion to $2 billion due to slower-than-anticipated EV demand, resulting in a 43% decrease in production capacity and a reduction in projected employment.

General Motors

General Motors intends to operate three battery plants in the U.S. through its joint venture with LG Energy Solutions, previously known as Ultium Cells until October 2024. This joint venture received a $2.5 billion loan from the government in December 2022 to aid in funding its battery factory projects.

GM has not only rebranded from Ultium, but also plans to incorporate lithium iron phosphate (LFP) battery technology to lower the cost of its EVs by “up to $6,000,” as stated by GM’s VP of batteries, Kurt Kelty, during the automaker’s investor day. The Ultium platform currently utilizes the more prevalent nickel manganese cobalt chemistry.

During its October 2024 investor day, GM also announced plans to build a new battery cell development center in Warren, Michigan, with production targeted to begin in early 2027.

LG is not the sole battery partner for GM. In April 2023, the automaker announced a joint venture with Samsung SDI to establish a new battery plant in the United States.

Beyond large-scale production, GM has collaborated with startup SolidEnergy Systems since 2021 to build a prototyping facility in Woburn, Massachusetts. The objective is to develop a high-capacity, pre-production lithium-ion battery.

GM is also actively working to secure control over the battery materials supply chain. In March 2022, the company partnered with South Korea’s Posco Chemical to construct a $400 million battery materials facility in Canada, which will produce cathode active materials. In February 2024, GM announced a deal with LG Chem involving a $19 billion investment over the next decade to source critical materials from LG Chem’s Tennessee plant.

Honda

In August 2022, Honda announced a joint venture with South Korea’s LG Energy Solutions to supply the North American market with “pouch type” battery cells. The Ohio facility will produce both cells and modules.

The automaker has also made significant progress in securing battery resource recycling channels and has established agreements with companies including Ascend Elements, Cirba Solutions and Posco Holdings.

Honda’s engine plant in Anna, Ohio, is currently being retooled to incorporate the production of casings for battery modules that will power Honda and Acura EVs manufactured in Ohio.

Hyundai

Hyundai and SK On approved plans in April 2023 to establish a joint venture to build a $5 billion battery plant in Bartow County, Georgia. Shortly thereafter, Hyundai and LG Energy Solution formed another JV to construct a battery cell factory near Savannah, Georgia, which will support the production of 300,000 units of EVs annually once the plant reaches full production capacity. Hyundai stated that Hyundai Mobis, the automaker’s parts and service division, will assemble battery packs using cells from the plant.

Hyundai Mobis also announced plans in 2022 to build an EV battery module plant in Alabama capable of supplying over 200,000 EV batteries annually to its parent company once the plant reaches full capacity.

Mercedes-Benz

Mercedes-Benz inaugurated a battery plant at its existing manufacturing facility in Alabama in 2022. That same year, the plant also became the production site for the automaker’s fully electric EQS SUV. The Alabama facility is also assembling the EQE SUV and the Maybach EQS SUV, according to a company spokesperson.

Mercedes is collaborating with Sila, a next-generation battery materials company, to integrate Sila’s battery chemistry into batteries as an option for buyers of the upcoming G-Class. Sila replaces the graphite in a battery cell with silicon and is scaling up production at its new Washington state facility. The companies are aiming for a range-extended version of the G-Class to be available mid-decade.

Stellantis

Stellantis and Samsung SDI began construction on their joint-venture EV battery facility in Indiana in March 2023. The factory will produce both lithium-ion cells and modules.

The company announced in July 2023 it would build a second battery factory with Samsung, which is scheduled to open in early 2027. In October, Stellantis provided further details.

Stellantis, encompassing brands such as Alfa Romeo, Chrysler, Jeep and Ram, also announced a joint venture with LG Energy Solution in 2021, named NextStar Energy, to build a North American factory with an annual capacity of 40 GWh. In March 2022, the two companies reached a binding agreement to invest (CAD $5 billion) $3.7 billion to produce cells and modules at a manufacturing plant in Windsor, Ontario, Canada.

Tesla

Since initiating production at Gigafactory Nevada in 2017, Tesla has manufactured over 7.3 billion battery cells and 1.5 million battery packs, providing approximately 39 GWh of annual capacity, according to Panasonic.

In January 2023, Tesla announced plans to invest billions more into the Nevada factory to include a new 4680 cell factory with the capacity to produce enough batteries for 1.5 million light-duty vehicles annually. The 4680 cells, designed by Tesla and unveiled at Battery Day 2020, are intended to reduce battery costs by over 50%. Tesla has encountered challenges in achieving volume production of these cells. A recent report from The Information suggests that Elon Musk may need to rely on external suppliers for batteries if the 4680 team does not make significant progress.

At the beginning of 2023, Tesla also outlined plans to expand its existing Gigafactory Austin to include battery cell testing and the manufacture of cathode and drive units, but has not released further details on these plans.

In May 2023, Tesla broke ground on a lithium refinery in Texas, making it one of the few U.S. automakers to refine its own lithium. The automaker plans to invest $375 million in the Corpus Christi factory, which will have a capacity of 50 GWh. Tesla provided an update in its Q4 2024 earnings report, stating that it intends to bring the plant online in 2025 before scaling up production.

Toyota

Toyota’s planned battery plant in North Carolina, initially announced in 2021, will produce both cells and modules. In late October 2023, Toyota announced a further multi-billion dollar investment in the factory. Once operational, it will feature 10 production lines to support both hybrid and EVs.

In February 2025, Toyota announced that its North Carolina plant is prepared to commence production and will begin shipping batteries for North American electrified vehicles in April.

Toyota has also partnered with South Korean battery maker LG Energy Solution, which will exclusively manufacture EV batteries for the Japanese automaker at its Michigan plant.

The Japanese automaker is also constructing a battery lab at its North American research and development headquarters in Michigan, where it can develop and evaluate the quality of its EV batteries. The $48 million lab is expected to become operational in 2025 and will support the company’s manufacturing operations in North Carolina and Kentucky.

Volkswagen

In July 2022, Volkswagen established PowerCo SE, a separate battery company, to produce batteries for its forthcoming EVs. Since its launch, the company has selected locations for three cell factories: two in Europe (Salzgitter, Germany, and Valencia, Spain) and one in North America (St. Thomas, Canada). PowerCo anticipates generating over 20 billion euros in annual revenue by 2030.

While VW’s battery factory is located in Canada and not directly within the U.S., it is expected to be eligible for incentives under the Inflation Reduction Act.

Volvo

Volvo operates a battery assembly factory in Charleston, South Carolina, but does not manufacture batteries or battery components at this location. Volvo did not disclose any further plans for battery production in North America.

Battery Production Facilities Emerging in North America

AESC

Formerly known as Envision AESC, this Japanese battery technology firm has committed to establishing three manufacturing sites within the United States before the end of the current decade. Their Tennessee plant has been operational for a period of time.

Groundbreaking ceremonies for facilities in Kentucky and South Carolina occurred in August 2022 and June 2023, respectively. In March 2024, AESC announced an expansion of its South Carolina operations, increasing the total project investment to $3.12 billion. However, in February 2025, these expansion plans were temporarily halted following the state’s withdrawal of $100 million in bond support. The company affirmed that its existing plant possesses sufficient capacity to fulfill BMW’s requirements.

Gotion

Gotion Inc., a Silicon Valley-based company owned by the Chinese firm Gotion High-Tech, initially revealed its intention to construct a battery factory in Michigan in October 2022. This factory, which secured $175 million in state funding in April 2023, was designed to produce both cathode and anode materials for use in electric vehicles and solar generators, as stated by a company representative.

However, Gotion has encountered resistance from local residents. The township board reversed a prior decision to extend the city’s water supply to the factory’s location. In March, Gotion initiated a lawsuit against the town, which remains unresolved.

Alongside the Michigan project, which is currently paused, Gotion is also developing another facility. In September 2023, the company announced plans for a second battery manufacturing plant in Illinois. This venture is anticipated to benefit from state incentives valued at $536 million, alongside potential tax benefits totaling $213 million over 30 years, contingent upon a minimum investment of $1.9 billion and the creation of numerous high-paying jobs.

Kore Power

Kore Power, a developer of battery cells and modules, announced in March 2024 that it had received approval to build a manufacturing facility in Buckeye, Arizona. However, in February 2025, the company abandoned these plans.

Kore Power now intends to sell its construction-ready property in Buckeye and instead focus on retrofitting an existing factory for battery production. The company previously indicated to TechCrunch that it would manufacture batteries for energy storage systems and electric mobility applications, including cars, trucks, buses, boats, and trains. It aims to support original equipment manufacturers (OEMs) by producing batteries compliant with 30D standards, and is actively collaborating with domestic partners to secure critical material suppliers within the country.

LG Energy Solution

LG Energy Solution, based in South Korea, is a supplier of EV batteries to major automakers such as Tesla, Lucid Motors, Toyota, and Proterra. The company has established joint ventures to construct battery factories with General Motors, Honda, Hyundai, and Stellantis.

Early in 2023, LG announced a fivefold increase in the capacity of its existing lithium-ion cell plant in Michigan, originally built in 2010, as part of an agreement with Toyota. The Holland factory currently produces large polymer battery cells, also known as pouch-type cells, and packs for EVs. The expanded plant will manufacture batteries utilizing a new long cell design, which LG claims will offer increased range, improved storage, and a simplified pack structure.

Furthermore, LG announced a quadrupling of its planned investment in a new Arizona factory to $5.5 billion, with a significant portion dedicated to EV battery production. The complex will comprise two manufacturing facilities: one for cylindrical batteries for EVs and another for lithium iron phosphate pouch-type batteries for energy storage systems.

In August 2023, LG unveiled an ambitious expansion plan in North America, intending to invest up to $17 billion through 2025 in the construction of eight factories (two of which are already operational) with a combined capacity exceeding 300 GWh. Specific details regarding each plant have not yet been disclosed.

LG’s parent company, LG Chem, commenced construction of a Tennessee plant in December 2023 to produce cathode material, with a planned investment of $3.2 billion and a target production capacity of 60,000 tons of cathode material annually. GM has committed as a customer, pledging $19 billion.

Northvolt

Northvolt, a Swedish lithium-ion battery producer, announced plans in late September 2023 to establish its first gigafactory in North America. The company had been considering locations in both North America and Germany for its next gigafactory, ultimately choosing the former due to the incentives offered by the Inflation Reduction Act (IRA).

Northvolt’s proposed factory will be located in Canada. However, in November 2024, Northvolt filed for bankruptcy.

Prior to the bankruptcy filing, Northvolt sold its U.S.-based manufacturing assets to Lyten, a Silicon Valley-based battery startup.

The company stated that its Quebec battery plant would proceed despite the U.S. bankruptcy filing. The project is estimated to cost over $7 billion, with Northvolt contributing $3.2 billion and local and federal governments providing approximately $4.2 billion. This expansion is supported by a $1.2 billion funding round led by BlackRock.

Northvolt informed TechCrunch that it has a supply agreement with a key customer, guaranteeing a buyer for its cells, but declined to reveal the customer’s identity.

The factory will also incorporate Revolt, Northvolt’s battery recycling program, with a capacity of 15 GWh. Northvolt aims to recycle half of the raw materials required for cell production by 2030.

Our Next Energy

Battery startup Our Next Energy (ONE) announced plans in October 2022 to build a gigafactory in Michigan dedicated to lithium-iron-phosphate (LFP) cells. This facility, backed by a $200 million grant from the state of Michigan, will encompass raw material refinement, cathode material production, and both cell and battery manufacturing.

In February 2023, the company secured a $300 million Series B funding round to facilitate production ramp-up.

Panasonic

Panasonic announced in July 2022 its intention to construct the world’s largest EV battery plant, a $4 billion facility in Kansas, to manufacture and supply lithium-ion batteries to EV manufacturers. Located in De Soto, this will be Panasonic’s second EV battery plant in the U.S., complementing the Panasonic Energy of North America (PENA) facility in Sparks, Nevada, which supplies Tesla with batteries.

In June 2023, Panasonic announced plans to increase production at PENA by 10% within three years. Simultaneously, the company stated its intention to build at least two new factories for the production of Tesla 4680 battery cells in North America by 2030. However, in January 2024, Panasonic’s CEO Yuki Kusumi indicated a shift in strategy, prioritizing productivity improvements over the construction of additional battery factories.

SK Battery America

South Korean battery manufacturer SK On has formed joint ventures to develop batteries with Ford and Hyundai. Its U.S. subsidiary, SK Battery America, also has independent plans.

SK Battery America has invested $2.6 billion in two manufacturing plants in Jackson County, Georgia, and commenced mass production in early 2022.