By Isabella O’Malley and Michael Phillis | Associated Press
On August 16, after the hottest June ever recorded and a scorching July, America’s long-sought response to climate change, the Inflation Reduction Act, turns one year old. In less than a year it has prompted investment in a massive buildout of battery and EV manufacturing across the states. Nearly 80 major clean energy manufacturing facilities have been announced, an investment equal to the previous seven years combined, according to the American Clean Power Association.
One target of the law is cleaner transportation, the largest source of climate pollution for the U.S. Siemens, one of the biggest tech companies in the world, produces charging stations for EVs. Executives say this alignment of U.S. policy on climate is driving higher demand for batteries. “This is years and years of manufacturing capacity that is already booked out because people are bullish about the U.S.-produced solar market,” he said.
“European and Japanese automakers are trying to think about how to change supply chains in order to try and compete,” said Neil Mehrotra, assistant vice president and policy advisor at the Federal Reserve Bank of Minneapolis and contributor to a report about the U.S. law published by the Brookings Institution.