How 10 New EV Battery Plants Will Transform America’s Auto Industry

A quiet (but transformative) revolution is underway in the United States.

Ten new electric vehicle (EV) battery manufacturing facilities—spanning across key states from North Carolina to Kentucky—are slated to come online this year, potentially nearly doubling the nation’s annual battery production capacity to over 420 gigawatt-hours. This surge is expected to power the next wave of American EVs while reducing reliance on foreign supply chains.

A New Chapter in U.S. Battery Production

The planned battery plants, backed by heavyweights such as Toyota, LG Energy Solution, SK On, and Panasonic, mark a significant pivot in the EV industry. According to recent data from Benchmark Mineral Intelligence, these facilities are on track to elevate U.S. battery production capacity by nearly 90% over the past year. With an estimated output of 421.5 GWh annually, the new capacity could supply enough cells for hundreds of thousands of vehicles each year, setting the stage for a dramatic expansion of the American EV market.

In Liberty, North Carolina, Toyota’s $14 billion battery hub is set to begin production in April, while Ford’s BlueOval SK complexes in Tennessee and Kentucky, along with LG Energy Solution’s joint ventures, are rapidly nearing completion. As global automakers shift more production stateside, the country is emerging as a formidable contender in the global battery race.

Driving Forces and Industry Shifts

Several factors are converging to drive this battery boom. Advances in battery technology—ranging from improved energy density to lower production costs—are making EVs increasingly competitive with traditional combustion engines. Concurrently, aggressive investments in domestic manufacturing are reducing the U.S.’s long-standing dependence on Chinese cells and components.

“The momentum behind these projects is undeniable,” noted Evan Hartley, an analyst with Benchmark Mineral Intelligence. “Even if short-term policy shifts occur, the sheer scale of these investments, many of which are in states with strong local support, makes it difficult to reverse course.”

Moreover, industry experts highlight that robust lease and financing deals, along with record EV sales experienced by automakers like General Motors, Hyundai, Kia, Honda, and Ford over the past couple of years, are bolstering demand for domestically produced batteries. These factors are critical in driving long-term growth, despite uncertainties on the policy front.

Global Competition and Domestic Promise

As foreign manufacturers continue to dominate battery production globally, America’s growing domestic capacity represents a strategic counterbalance. The surge in planned U.S. facilities is part of a broader effort to establish a “Battery Belt” across the Midwest and South, with significant investments supported by state governments and federal incentives.

However, the future remains clouded by political uncertainty. With President-elect Donald Trump expressing intentions to curb EV tax credits and potentially impose steep tariffs on imported auto parts, industry leaders are keeping a close eye on policy developments. Despite these headwinds, many executives and local officials remain optimistic, emphasizing that once these plants are built, their long-term viability will rest on economies of scale and the growing demand for EVs.

Looking Ahead

While short-term challenges persist, the long-term outlook for American battery production is promising. As these new facilities come online, they are expected not only to supply the burgeoning U.S. EV market but also to create tens of thousands of jobs, bolster local economies, and foster technological innovation. In the coming years, if production scales as planned and policy environments stabilize, the U.S. could emerge as a major global hub for battery manufacturing—a critical piece in the puzzle of electrifying transportation and securing energy independence.

The American battery revolution is here, and its impact could reshape both the domestic auto industry and the global EV supply chain for decades to come.

More information:
The U.S. Is About To Nearly Double Its Battery Production Capacity