Audi is considering building a new electric vehicle (EV) plant in the United States, according to the company’s CEO, Markus Duesmann. The decision comes as a response to the Inflation Reduction Act (IRA), another law that stimulates EV production in the country.
If Audi builds an EV plant in the US. indeed, it will likely be a joint venture with the Volkswagen Group, which already has a plant in Chattanooga, Tennessee. Currently, Audi’s e-tron EVs are manufactured in Brussels, Belgium, while a factory near the US. is based in San Jose Chiapa, Mexico, where Audi builds the Q5.
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Under the IRA, EVs must be assembled more widely in the US. and to qualify for some of the tax credits mentioned in the law. Additionally, other recent federal regulations such as the CHIPS and Science Act are encouraging companies to manufacture EV products such as batteries and silicon chips in the US.
The IRA has already spurred more than $28 billion in EV industry investment announcements between its signing date of August 2022 and the end of the year, according to the Electric Vehicle Association. Figures from the Bureau of Economic Analysis show that investment in the U.S. has grown by 1.3%. all types of workplaces are also increasing.
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Audi of America has an ambitious electrification plan, aiming to electrify one-third of its portfolio by 2025. The company also plans to invest about $19 billion to generate and new hybrid and electric vehicles have been developed. U.S. a new facility would better align with these plans.
In summary, Audi is considering building a new EV plant in the US. to take advantage of the incentives provided by the IRA and other federal laws. The move will enable Audi to increase production of electric vehicles in the country and achieve its ambitious electrification targets in the coming years.