Biden's Legacy: Strengthening the US EV and Battery IndustriesBiden's Legacy: Strengthening the US EV and Battery Industries
Despite low public approval, President Biden's policies profoundly strengthened the US EV and battery sectors through strategic legislation and investments.

The conclusion of President Joe Biden's term has seen declining approval ratings, yet his impact on the US electric vehicle (EV) and battery industries has been transformative. Key legislation such as the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) have created significant economic advantages for these sectors, positioning them for long-term success.
The IRA, enacted in 2022, introduced strict battery material sourcing requirements and final assembly mandates to qualify for consumer EV tax credits. To access the full $7,500 incentive, a rising percentage of critical minerals used in batteries must be sourced from the U.S. or countries with free trade agreements. Simultaneously, a portion of battery components must be manufactured or assembled in North America. These measures have catalyzed foreign direct investment, with companies from South Korea and Japan establishing manufacturing facilities across the U.S. to qualify for incentives and meet domestic demand.
Public, private, and foreign investment in US energy manufacturing
Since the enactment of the Inflation Reduction Act (IRA) in 2022, there has been a significant surge in both private and public investments in the U.S. electric vehicle (EV) and battery manufacturing sectors. Investment in new manufacturing capacity for zero-emission vehicles, batteries, and critical minerals has more than doubled, increasing from $15 billion in the year before the IRA's passage to $35 billion in the year following its enactment. International companies, particularly from South Korea and Japan, have announced substantial investments in U.S. manufacturing facilities to comply with the IRA's sourcing requirements and capitalize on tax incentives.

In 2024, the U.S. Department of Energy committed a $7.54 billion loan to StarPlus Energy LLC, a joint venture between Stellantis and Samsung SDI, for constructing two EV battery plants in Kokomo, IN. Credit: Stellantis.
Since the IRA’s 2022 passage we’ve tracked battery manufacturing investment news in our Battery Building Spree series, which has reached more than 50 articles. A more concise look at the data can be found at Wellesley College’s dedicated tracking site, The Big Green Machine.
Similarly, the IIJA has directed $5 billion toward the buildout of a national EV charging infrastructure, addressing range anxiety and supporting broader EV adoption. As of early 2025, hundreds of federally funded charging stations are operational, with further expansion planned. This effort not only modernizes infrastructure but also ensures that the U.S. remains competitive in the global EV market.
Further bolstering the battery sector, the Department of Energy has allocated over $3 billion in grants to expand domestic battery production capacity. Investments in states such as Michigan, North Carolina, and Ohio have supported job creation and reduced reliance on foreign battery supply chains, improving energy security and economic resilience. (Notably, GOP-led states are disproportionately reaping the benefits of these investments.)
Despite these achievements, Biden's broader popularity has been impacted by factors unrelated to industrial policy, such as inflation and geopolitical tensions. However, his administration's targeted focus on clean energy and domestic manufacturing has undeniably strengthened the US EV and battery landscape.
A legacy to build on—maybe?
As the political climate shifts, the continuation of these policies remains uncertain: Donald Trump, due to be sworn in as Biden’s successor on January 20, has a very different agenda in mind. Yet the foundation laid by the IRA and IIJA suggests that the US automotive and battery industries will continue to benefit from Biden's forward-looking economic policies, regardless of current political winds. His legacy, at least in these sectors, is one of strategic progress and industrial revitalization.
Beyond that are real worries that China’s strong lead in battery and EV technology and production is already insurmountable—that companies such as CATL and BYD are poised to dominate the global transition to electric vehicles in the coming decades and its rivals here won’t be able to catch up. Or that ascendent political leaders won’t have the will to let them try. Well, we’ll see.
But if the US battery and automotive industries do survive—and somehow even thrive—to reach the second half of this century, they will look back at the work of Joe Biden and his administration in these past for years with gratitude. However many of their employees lost faith in him by November 2024, he believed in them and supported their mission until the end.
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