"A 20% reduction in cost for electric vehicle batteries occurred within the last year, as detailed by InsideEVs."

The global battery market is experiencing a significant surge, but the future of America's involvement in this rapidly growing sector remains uncertain.

According to recent reports, a current version of President Donald Trump's budget bill is poised to eliminate both EV tax credits and tax incentives for domestic battery manufacturing. This move could potentially hamper the growth of the domestic industry, as it has been attracting foreign investments, particularly from Korean companies.

In 2024, the manufacturing capacity in the United States grew by almost 50%, with Korean companies leading the charge, thanks to the tax credits. This growth, however, did not prevent the United States from surpassing the installed capacity of the European Union in the same year, despite the halt of the Northvolt plant in Sweden following its bankruptcy.

The market is predominantly dominated by China, with Contemporary Amperes Technology Co. Limited (CATL) from China being the largest producer of lithium-ion batteries in 2024. China leads the market not only in production but also in the recycling of these batteries, holding a very high share.

In contrast, the use of LFP batteries, which are known for their safety and longevity, grew by about 90% in the European Union in 2024, but remained at only 10% in the United States due to anti-China tariffs. Interestingly, in Southeast Asia, Brazil, and India, the share of electric car batteries using LFP reached more than 50% in 2024.

The global battery boom isn't going anywhere, and there's some good news for consumers. EV Batteries Got 20% Cheaper Last Year, according to InsideEVs. Moreover, in 2024, the average price of a 20 kWh PHEV battery pack was the same as a 65 kWh BEV battery pack, indicating a potential shift towards more affordable electric vehicles.

LFP batteries made up nearly half of the global EV battery market in 2024, suggesting a growing trend towards these safer and more cost-effective batteries. As the world moves towards a more sustainable future, it remains to be seen how America will navigate its role in this global battery boom.

"A 20% reduction in cost for electric vehicle batteries occurred within the last year, as detailed by InsideEVs."