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Can strong incentives enable domestic EV supply chains?

The US’ effort to onshore its EV supply chain is proving successful, but must be sustained long-term to meet future demand. By Stewart Burnett

The US auto industry is in a state of transition, aided by policy measures that incentivise the manufacture of electric vehicles (EVs). The 2022 Bipartisan Infrastructure Law allocated US$7bn to assist domestic manufacturers in securing the materials and components necessary for battery manufacture. A further US$15.5bn in grants was announced as part of the Inflation Reduction Act (IRA) in August 2023 to stimulate domestic EV production.

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