IRA boosts US's battery gigafactory capacity pipeline overtaking Europe
The battery cell manufacturing capacity pipeline in the US at present is said to be larger than that of the entire Europe, according to two independent reports brought out by Clean Energy Associates (CEA) and Benchmark Mineral Intelligence.
By the end of 2022, North America had become the fastest growing regional market for planned new battery cell manufacturing plants, according to CEA's latest 'Energy Storage System Supplier Market Intelligence Program' report. Much of this growth is attributable to incentives provided by the U.S. Inflation Reduction Act (IRA), the report adds.
Benchmark's latest gigafactory assessment report, on the other hand, reiterates the fact that battery manufacturing in the US has overtaken Europe in terms of cumulative capacity in pipeline.
The report points to the catalyst effect played by the IRA, with 436 GW of battery capacity being added since the passing of the IRA legislation, registering a whooping 57.9 percent jump.
On the question of why Europe is lagging behind, CEA report opines that the region has witnessed delays and cancellations of several planned production facilities, due in large part to high energy prices and more attractive policy support from other regional markets.
China continues to lead the global industry as the manufacturing hub for battery cells, but its share is likely to decline in coming years, the CEA report adds.