Which states will build the most EV batteries in 2030?

Planned EV battery factory capacity in North America by 2030. Data updated to November.

US Department of Energy, Argonne National Lab

Georgia, Kentucky and Michigan will dominate EV battery manufacturing in the United States by 2030.

Each of these three states will be able to produce between 97 and 136 gigawatt hours of electric vehicle batteries per year by 2030, according to the plans they have set.

Kansas, North Carolina, Ohio and Tennessee will also be key players, with projected capacity of 46 to 97 gigawatt hours of battery production for electric vehicles per year by 2030.

That projected production capacity was highlighted Monday by the US Department of Energy based on a November 2022 report by Argonne National Laboratory in November.

To keep up with increasing demand for electric vehicles, the overall build-out of electric vehicle battery production capacity in North America will increase from 55 gigawatt hours per year in 2021 to almost 1,000 gigawatt hours per year by 2030. So far, the planned investment in these factories is more than $40 billion, according to an October report by the Federal Reserve Bank of Dallas.

The Ford Motor Co. and SK Innovation Co. electric vehicle and battery manufacturing complex under construction near Stanton, Tenn. on Tuesday, 20/09/2022.

Houston Cofield | Bloomberg | Getty Images

By 2030, this EV battery manufacturing capacity will support the manufacture of between 10 and 13 million fully electric vehicles per year, enabling the US to be a global EV competitor.

“Increasing battery manufacturing capacity more than 15-fold by 2030 will put the U.S. at the forefront of the EV market,” Nick Nigro, founder of public policy shop Atlas Public Policy, told CNBC.

“This capacity will provide more than enough batteries for the US to meet the Biden administration’s goal of 50% EV sales by 2030,” Nigro told CNBC. Atlas’ work covers both transport and climate policy.

The proposed wave of EV battery manufacturing facilities will be near EV assembly plants in North America, indicated by red dots on the chart.

“It really seems like they’re trying to lower their overall manufacturing costs here,” David Gohlke, one of the Argonne-based paper’s authors, told CNBC. “They have these relatively heavy batteries that they need to transport from the assembled battery site to their automotive assembly plant, and they need to make sure they have the infrastructure to do that.”

Nearly all of the proposed facilities in Argonne’s report will make lithium-ion batteries and will be joint ventures between automakers and battery makers such as Panasonic, Samsung, LG Chem or SK Innovation, Gohlke told CNBC.

In the future, it will also be important to train workers and ramp up the supply chains of the necessary minerals, Nigro told CNBC.

“The big challenge for the industry will be building a reliable supply chain and building the human capacity to get these factories up and running,” Nigro told CNBC.

In Silver Peak, America's only active lithium mine

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