![](https://cdn.motor1.com/images/mgl/7ZPloP/s1/ford-mustang-mach-e-battery.jpg)
New data indicates that the majority of plug-in electric vehicles sold in the United States are also equipped with battery cells and battery packs domestically produced.
The Department of Energy (DOE)’s Vehicle Technologies Office recently highlighted the Argonne National Laboratory (ANL)'s report, which says that capacity-wise, 57 percent of battery cells and 84 percent of battery packs in plug-ins sold between 2010 and 2021 were also produced in the US.
Those are pretty healthy numbers. The Inflation Reduction Act of 2022 (IRA) is expected to amplify local battery-related investments so the situation will be even higher.
The three largest foreign "suppliers" of battery cells were Japan, South Korea, and Poland. In the case of battery packs, the largest foreign suppliers were Japan, Germany, and South Korea.
However, ANL noted that despite the majority of cells being produced locally, they may contain materials from other countries. As we understand, the goal is to secure local production of key materials as well.
Manufacturing Location for Cells, Packs, and Vehicles for PEVs Sold in the United States from 2010 to 2021 (GWh)
![](https://cdn.motor1.com/images/custom/thumbnail/manufacturing-location-for-cells-packs-and-vehicles-for-pevs-sold-in-the-united-states-from-2010-to.png)
Source: David Gohlke, Yan Zhou, Xinyi Wu, and Calista Courtney, Argonne National Laboratory, Assessment of Light-Duty Plug-in Electric Vehicles in the United States, 2010–2021, ANL-22/71, 2022.
It's worth adding that from 2010–2021, more than 2.1 million plug-in electric vehicles were sold in the US (including 1.3 million all-electric and 0.8 million plug-in hybrids).
As the volume quickly increases, it's crucial to localize the production of battery materials, battery cells, and battery packs (as well as electric motors and power electronics) in the country. It's important both for the economy, as well as to limit reliance.
Once all aspects are combined (including local energy generation and recycling of batteries), there will be a very strong EV industry.
We guess that other markets, like Europe and China, will have to create something similar to stay in the game. It will be very interesting, especially to see what the European industry decides, as Europe (along with South Korea and Japan) was the most affected by the IRA. For example, Volkswagen just paused its European battery plans.