Tax credits and rising efforts to curb dependence on China's supply chain are incentivizing manufacturers and investors. EV battery manufacturing is set to witness the most funding in 2023, with automobile companies including Ford, Toyota, and BMW setting up their own factories to manufacture equipment for their upcoming EV platforms. Meanwhile, investments in grid-scale battery and PV equipment manufacturing facilities are also expected to surge to cater to the planned expansion of solar and battery storage capacity in the country.
Due to global supply chain issues and the upcoming ban on solar module imports from Asian countries by the US government, effective from Jun'24, project developers are seeking domestic supplies. This surge in demand is accelerating the expansion of the domestic manufacturing industry, with both developers and manufacturers enjoying significant tax credits under the IRA for the production and use of local content
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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