Source: How The Clean Vehicle Tax Credit Builds Domestic Manufacturing
Today, my colleagues and I published a new analysis on the impact of the Clean Vehicle Tax Credit, or 30D, on domestic vehicle and battery manufacturing. The analysis found that a total of $61.9 billion in announced investments and 91,900 jobs are directly tied to facilities that currently or intend to manufacture vehicles or batteries qualifying for the tax credit, pointing to the credit’s crucial role in shaping the U.S. electric vehicle (EV) manufacturing landscape.
For context, the Clean Vehicle Tax Credit was originally created under the Energy Improvement and Extension Act of 2008 and it was reauthorized by the Inflation Reduction Act (IRA) in 2022 to prioritize domestic production. The credit in its current form provides up to $7,500 for new electric light-duty vehicles that are assembled in North America, provided that a certain percentage of battery components are sourced from North America and that critical minerals come from either the United States or a U.S. free trade agreement partner.
In this latest analysis, we identified the U.S. facilities producing eligible vehicles and the batteries that power them, along with their final assembly locations. These facilities were cross-referenced with those tracked on Atlas’ Clean Economy Tracker, a tool monitoring the domestic clean energy supply chain. The total job and investment figures were drawn from public announcements for each facility. As a note, the numbers reflect total clean energy-related jobs and investments at each site, not just those tied specifically to vehicles eligible under the tax credit, because detailed credit-eligible employment data was unavailable.
First, this analysis reveals that $41.7 billion in announced investments and 72,300 jobs are tied to facilities producing 30D eligible EVs and batteries. Of that investment, 65 percent of investment is in U.S. Congressional districts represented by Republicans. Among the top Republican districts attracting this investment are:
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Nevada’s 2nd district, represented by Congressman Mark Amodei. Tesla’s Gigafactory Nevada has committed $8.3 billion and 10,200 jobs to battery and EV drivetrain manufacturing, and will soon begin assembling vehicles as well.
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Michigan’s 4th district, represented by Rep. Bill Huizenga, LG Energy Solution has committed $5 billion and 2,300 jobs for its Holland Battery Factory, which produces battery packs for the Chrysler Pacifica Plug-in Hybrid.
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Tennessee’s 5th district represented by Andy Ogles, General Motors has invested $2 billion in its Spring Hill EV assembly plant, where the Cadillac Lyriq and Acura ZDX are produced, and partnered with LG Energy Solution to build a $2.6 billion Ultium Cells facility employing 1,700 workers.
In addition to existing facilities, an additional $20.2 billion in investments and 19,600 jobs have been announced at facilities that plan to manufacture vehicles or batteries that will qualify for the tax credit in the future. One example is Rivian, whose R1S and R1T trucks received partial tax credit eligibility in 2024 but will not qualify in 2025. To make its upcoming R2 model eligible, Rivian is shifting its battery supply from South Korea–based Samsung SDI to LG Energy Solution, which is building a U.S. plant in Queen Creek, Arizona. The 2025 Hyundai Ioniq 5 is also not eligible for the New Clean Vehicle Tax Credit in 2024 or 2025, so Hyundai moved its production to its new Metaplant in Savannah, Georgia in March 2025 and the company expects it will qualify later in 2025.
These totals certainly undercount the overall supply chain supported by the Clean Vehicle Tax Credit. The tax credit is helping boost the U.S. EV and battery supply chain while supporting tens of thousands of jobs and boosting EV adoption to keep pace with China and Europe. Research released in April 2025 found that eliminating the New Clean Vehicle Tax Credit, Commercial Clean Vehicle Tax Credit, and Advanced Manufacturing Tax Credit could eliminate 130,000 net manufacturing jobs by 2030 and another 310,000 jobs in indirect jobs. Repealing or weakening the credit could slow down this progress and affect the U.S. EV industry.
View the full analysis here.
