Does IRA supply-side policy affect battery economics?

Specifically, it describes the key supply and demand incentives offered by the bill, assesses the impact of IRA supply-side policies on US battery economics to date, and examines the demand-side provisions of the IRA, which include notable eligibility constraints on the origins of battery components and critical minerals.

What are the different types of energy storage policy?

Approximately 16 states have adopted some form of energy storage policy, which broadly fall into the following categories: procurement targets, regulatory adaption, demonstration programs, financial incentives, and consumer protections. Below we give an overview of each of these energy storage policy categories.

Do IRA incentives affect electric vehicle battery technology and supply chain decisions?

We analyse US Inflation Reduction Act (IRA) incentives for electric vehicle battery technology and supply chain decisions. We find that the total value of available credits exceeds estimated battery production costs, but qualifying for all available credits is difficult.

What are eligible activities for EV batteries?

According to the Department of Energy, eligible activities will include second-life applications for EV batteries and technologies and processes for final recycling and disposal of EV batteries. For more information, see DOE Notice of Intent.

Is there a license tax for buying batteries?

Shops that sell, repair, or recharge batteries are subject to a license tax. The tax amounts vary by shop location according to the following rates: Battery manufacturers are subject to a license tax of $100.

What DOE grants are available for battery-grade precursor materials?

DOE grants are available for demonstrations and commercial facilities for battery-grade precursor materials. The following areas of interest may be included in the funding opportunity announcement: