These states will dominate EV battery manufacturing in 2030

Georgia, Kentucky and Michigan are going to dominate electric vehicle battery manufacturing in the United States by 2030.

Each of those three states will be able to manufacture between 97 and 136 gigawatt hours’ worth of EV batteries per year by 2030, according to plans they have laid out.

Kansas, North Carolina, Ohio and Tennessee will also be key players, with planned capacity for between 46 and 97 gigawatt hours’ of EV battery production per year by 2030.

This planned manufacturing capacity was highlighted by the U.S. Department of Energy on Monday, based on a November 2022 report from the Argonne National Laboratory in November.

To keep up with increasing demand for EVs, the total build out of EV battery manufacturing capacity in North America will go from 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 from the Federal Reserve Bank of Dallas.

By 2030, this EV battery manufacturing capacity will support the manufacturing of between 10 million and 13 million all-electric vehicles per year, putting the U.S. in position to be a global EV competitor.

“Growing battery manufacturing capacity by more than 15x by 2030 will put the U.S. in the leadership circle of the EV market,” Nick Nigro, founder of the public policy shop, Atlas Public Policy, told CNBC.

“This capacity will provide more than enough batteries for the U.S. to reach the Biden Administration’s goal of 50% EV sales by 2030,” Nigro told CNBC. The work Atlas does includes both transportation and climate policy.

The planned wave of EV battery manufacturing plants will be close to EV assembly facilities in North America, identified by red dots in the graphic.

“It really appears that they are trying to reduce their overall manufacturing costs here,” David Gohlke, one of the authors on the paper from Argonne, told CNBC. “They have these relatively heavy batteries that they need to ship from the assembled battery assembly location to their automotive assembly plant, and they need to make sure that they have the infrastructure around to do that.”

Virtually all of the planned plants in Argonne’s report will make lithium ion batteries and will be joint ventures between automakers and battery manufacturers like Panasonic, Samsung, LG Chem or SK Innovation, Gohlke told CNBC.

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

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