Here’s How Big Companies Are Benefiting From Biden’s Green Tax Initiatives – And Creating More Than 65,000 Jobs

Top line

Last week, Volkswagen-owned Audi said it is considering building a factory in the United States, following in the footsteps of other auto, battery, solar panel and computer chip manufacturers taking advantage of incentives provided by the De-Inflation Act. (IRA), CHIPS and the Bipartisan Science and Infrastructure Bill to wind up production and create more than 65,000 jobs.

Key facts

Ford announced on February 13 that it will invest $3.5 billion to build a lithium iron phosphate (LFP) battery plant in Michigan, expecting to employ 2,500 people once production of LFP batteries begins in 2026.

In January, Hanwha Qcells, a solar panel manufacturer in Korea, announced plans to spend $2.5 billion to build a manufacturing plant in Georgia, producing components for its solar panels, with a view to breaking ground on the plant in the first quarter of 2023 and provide 2,500 jobs. for the clean energy sector by 2024.

Battery manufacturer Redwood Materials – founded by Tesla co-founder JB Straubel – unveiled plans in December to spend $3.5 billion to build a 600-acre facility to manufacture critical materials for EV batteries in Charleston, South Carolina, giving into 1,500 jobs, and was recently awarded a $2 billion dollar loan from the Department of Energy.

Taiwan’s largest semiconductor chip manufacturer, TSMC, has begun construction on a chip plant in Phoenix, Arizona, following a $40 billion dollar investment in two plants in the United States, and at least 4,500 jobs gained within its facilities own.

US chip manufacturer Micron plans to invest billions in New York to build a facility by 2030, promising the state will bring nearly 50,000 jobs, including 9,000 at Micron.

Last January, General Motors said it would invest $7 billion in Michigan to build a battery plant and reinvest in existing auto plants to begin production of EV vehicles by 2024, hoping Create 4,000 new jobs and retain 1,000 existing jobs.

Big Number

Investment in industrial equipment has gone from $247 billion in 2020 to $319.6 billion in the fourth quarter of 2022, while manufacturing rose from $71.5 billion in 2020 to $105.9 billion at the end of 2022, according to the Bureau of Economic Analysis.

Key Background

Manufacturers are counting on the incentives the Biden Administration was able to attach to various bills it passed last year. The CHIPS Act provided $52.7 billion in subsidies to American semiconductor companies for research and development, manufacturing and workforce development. The IRA bill provides a $7,500 tax credit for consumers who purchase an electric vehicle, and has production tax credits for clean energy such as solar, wind and electric batteries.

Important quote

“There is growth and expansion and this is certainly expected to become stronger over the next few years as the incentives kick in, as we go from announcing plans to steel in the ground and new production equipment under the roof ,” said Brad Setser, a senior fellow at the Council on Foreign Relations The Washington Post.

Further Reading

Ford To Build $3.5 Billion Lithium Iron Phosphate Battery Plant In Michigan Using CATL Technology (Forbes)

Redwood Wins $2 Billion Federal Loan to Scale Up Production of Battery Material For Electric Cars (Forbes)

Cost of Battery Production Tax Credits Provided in the IRA (Forbes)

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