IRA Pays Off as Tesla Shifts Partial Battery Production Back to Us from Germany

Published: Feb 22, 2023 14:00

Save

Tesla initially planned to produce the batteries at its plant in Gruenheide, Germany, with a peak annual capacity of more than 500 GWh.

Last August, US President Joe Biden signed the Inflation Reduction Act (IRA), worth a total of $750 billion, to provide varying subsidies based on output for producers involved in all aspects of electric vehicle battery production from 2022 to 2029. At the same time, a 30% of tax credit for investment in relevant equipment will be provided as well.

These incentives have stimulated many electric car companies to locate their production in the US, including Tesla.

The Ministry for Economic Affairs of Brandenburg, Germany said on February 21 that Tesla has suspended its whole plans to produce batteries in Brandenburg and will instead move part of the production procedures to the US, where the company will enjoy more favourable tax credit.

Tesla initially planned to produce the batteries at its plant in Gruenheide, Germany, with a peak annual capacity of more than 500 GWh.

Market Market

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

16 hours ago

Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth

On January 28th, the construction of the 500-kilovolt power transmission and transformation project in Fengtai, Beijing officially started. This project is the first newly-built 500-kilovolt power grid project in Beijing during the 15th Five-Year Plan period. It will significantly enhance the resilience and power receiving capacity of the southern Beijing power grid and provide reliable power support for Beijing to continuously optimize the investment structure and vigorously develop high-end, precise, and cutting-edge industries. The 500-kilovolt power transmission and transformation project in Fengtai, Beijing is a key project of Beijing's power grid during the 15th Five-Year Plan period and one of the "3 100" key projects in Beijing this year. It is constructed and managed by the State

16 hours ago

Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run

On February 1st, the 500-kilovolt AC system of the Hezhou Converter Station, the receiving-end station of the ±800-kilovolt UHV DC power transmission project from northern Shaanxi to Anhui, was officially put into operation after a 24-hour trial run.

16 hours ago

750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational

On February 2nd, the 750-kilovolt power transmission and transformation project of the third passageway from northern Shaanxi to central Shaanxi was fully connected. The project starts from the 750-kilovolt Shuofang Substation in Shenmu City in the north and ends at the 750-kilovolt Bailuyuan Substation in Lantian County in the south. It has newly built a 1,271-kilometer line, passing through 18 counties (districts) in 4 cities including Yulin, Yan'an, Weinan and Xi'an.

16 hours ago