Congress is on track to pass a bill that could devastatingly impact the US electric vehicle (EV) battery industry, leading to thousands of job losses. The One Big Beautiful Bill, dubbed by opponents as “a poison pill” for the EV sector, aims to slash EV battery manufacturing and production costs. Experts warn that this would reduce annual sales of EVs by 40% in 2030 and destroy pro-EV tax credits.
The bill, which has already passed the House of Representatives, pays for tax cuts and increased spending on defense and immigration enforcement by eliminating key climate policies like the Inflation Reduction Act (IRA). This would eliminate rebates for North American-made EVs, restrict domestic production of battery packs and cells, and introduce a $250 annual registration tax for EVs.
Automakers rely heavily on batteries to power their electric vehicles. As demand for EVs slows down due to the bill’s policies, so will the need for battery cells. This could lead to factory closures, job losses, and reduced investment in US-based battery production.
The REPEAT Project estimates that if the bill becomes law, planned US battery capacity by 2025 may not be necessary by 2030. Currently, the majority of batteries are controlled by Chinese companies, but a slowdown in demand for EVs would reduce the need for domestic production.
Experts predict that deep cuts to battery production could lead to job losses of up to 130,000 people, including 85,000 jobs in battery manufacturing alone. The impact would be immediate, with thousands of jobs disappearing starting in 2026.
The bill’s passage by the House has been met with disappointment from some Republicans who had previously defended the IRA’s tax credits for clean energy. However, only two Republicans voted against the bill, citing that the cuts did not go far enough. The bill now heads to the Senate, where lawmakers have set a July 4 deadline to send it to the president’s desk.
The fate of the US EV battery industry hangs in the balance as lawmakers debate the implications of the One Big Beautiful Bill.
Source: https://insideevs.com/news/760600/trump-bill-battery-boom-congress