Our take on the latest developments in the IRA’s real-world impact:

“The IRA has been law for only a little over a month now—and the reach of its investments are already transforming American electric vehicle manufacturing,” said Evergreen Action Deputy Press Secretary Elizabeth Cavalieri. “Public investments flowing from IRA are driving private investments from companies like Kia, Hyundai, and other major manufacturers, from the Midwest to the Carolinas. This trend is pushing the U.S. to the head of the pack as a leader in the global clean energy economy. The impact of the IRA’s investments, in real life, are reverberating from the global level down to the local level, and we know this is just the beginning.”

Critical Impact:

The IRA Is Driving Private Investment Behind U.S. Electric Vehicle and Battery Manufacturing Boom

Major manufacturers like Kia, Hyundai, Honda, Toyota, GM, BMW, and others, are racing to move the final stages of their vehicle production lines to American facilities so that they meet the criteria for the IRA’s EV consumer tax credit. But this trend isn’t unique to vehicle manufacturers. Battery, tech, and clean infrastructure companies are among the multitude of industries where executives are moving to bring jobs and production back to the United States. This trend is critical for bringing jobs back to the U.S. and sets America up as the leader in the global transition toward a clean economy. The IRA will allow the U.S. to be at the forefront of the clean transition, which will deliver more jobs, competitive wages, and more investment right here at home. 

Additional IRA Impact:

Federal government offers debt relief to farmers | KTIV Sioux City | AP | 10.23.22

“The U.S. Department of Agriculture announced the farm loan relief program funded from $3.1 billion set aside in the Inflation Reduction Act allocated toward assisting distressed borrowers of direct or guaranteed loans administered by USDA. The law was passed by Congress and signed by Biden in August. The money announced Tuesday is the first round of payments designed to help farmers hard hit by pandemic-induced market disruptions or climate-driven natural disasters including drought stay in business or re-enter farming.” 

U.S. EPA begins work to set up $27 bln green bank | Reuters | Valerie Volcovici | 10.21.22

"The Greenhouse Gas Reduction Fund is part of the administration's broader effort to combat climate change and environmental injustice. "It's exciting to know that we are creating a program that will infuse billions of dollars of capital into local communities that will have a direct impact on energy efficiency programs, community solar programs or programs that they know will reduce pollution and create jobs," EPA Administrator Michael Regan told Reuters on Friday in an interview." 

Automakers’ Bold Plans for Electric Vehicles Spur U.S. Battery Boom | Federal Reserve Bank of Dallas | Michael D. Plante and Jessica Rindels | 10.11.22

“The U.S. government hopes to further boost investor interest in these areas through numerous provisions contained in the Inflation Reduction Act of 2022. The act offers direct subsidies to defray the costs of producing critical minerals, battery components and battery cells. Further, the tax credit available to buyers of EVs—worth up to $7,500 per car—includes requirements for the percentage of both the value of battery components and the value of critical minerals that must be sourced from domestic producers or free-trade partners.” 

New Lithium-Ion Battery Recycling Facility to Produce Critical Materials for North American Battery Supply Chain | Globe Newswire | Cirba Solutions | 9.28.22

“‘The lithium-ion battery market is expected to grow exponentially over the next several years, with a projected market size approaching $25 billion by 2028,’ Cirba Solutions' President & CEO, David Klanecky said. ‘Federal incentives for the purchase of EVs, requirements for domestic EV battery manufacturing included in the Inflation Reduction Act, and state requirements like California’s recent move to require all new vehicles sold in the state to be zero-emission by 2035, ensure that lithium-ion battery recycling will be critical for auto-manufacturers to meet demand and have a sustainable future.’”

Solar installations will triple by 2027 thanks to climate bill, report predicts | CNBC | Pippa Stevens | 9.8.22

“‘The Inflation Reduction Act has given the solar industry the most long-term certainty it has ever had,’ Michelle Davis, principal analyst at Wood Mackenzie, said in a statement. ‘Ten years of investment tax credits stands in stark contrast to the one-, two-, or five-year extensions that the industry has experienced in the last decade. It’s not an overstatement to say that the IRA will lead to a new era for the U.S. solar industry,’ she added.”

Bosch Is Investing $200 Million To Make Fuel Cells For Hydrogen Trucks In South Carolina | Forbes | Alan Ohnsman | 8.31.22

“The investment comes on the heels of the U.S. Inflation Reduction Act signed into law this month that provides incentives for building and buying vehicles powered by hydrogen–as long as it’s “green” and made from sources that emit no carbon pollution. Hydrogen fuel cells are an alternative source of electric power for vehicles, but whereas batteries store electricity for propulsion, fuel cells make it on demand.”
 

Interested in chatting with our team more about what these impacts mean for climate and clean energy? Reach out to us at elizabeth@evergreenaction.com.