Foxconn to Build EV Batteries in Wisconsin and Ohio, Taking Advantage of Inflation Reduction Act
Foxconn, the manufacturer of Apple's iPhone, has announced plans to produce electric vehicle (EV) batteries in Ohio and Wisconsin.
The move comes after the company's recent purchase of Lordstown Motors' Ohio factory, which helped to save the EV company from bankruptcy.
Foxconn Chairman Young Liu stated that the company would build capacity for battery cells and packages for energy storage systems in Wisconsin and for battery packages for whole cars in Ohio.
The decision to produce EV batteries in the U.S. is in part due to the incentives provided by the Inflation Reduction Act, which offers tax credits for domestic cell manufacturing. To qualify for these incentives, local cell production is a key requirement.
Liu highlighted the IRA as a significant factor in Foxconn's decision to manufacture locally, stating that "the timing for the IRA introduction is very good for us. We saw the opportunities in developing battery-related capacity. The U.S. government is also very supportive."
Foxconn's Ohio production is likely to occur at the Lordstown Plant, which was purchased from Lordstown Motors, while production in Wisconsin will take place at the Mount Pleasant plant.
Foxconn's plans to produce EV batteries on site could help to progress the construction of the Mount Pleasant plant, which has faced delays in receiving tax subsidies.
The move by Foxconn to produce EV batteries domestically is part of a larger trend of companies seeking to take advantage of the incentives offered by the Inflation Reduction Act.
With local cell production being a key requirement, this trend could help to bolster the U.S.'s position in the global EV market while also creating new job opportunities in battery manufacturing.