How the Inflation Reduction Act is driving U.S. job growth across the electric vehicle industry
Press release
IRA repeal threatens 130,000 American Jobs by 2030
(WASHINGTON, DC) – A new analysis from the International Council on Clean Transportation (ICCT) finds that repealing the Inflation Reduction Act (IRA) would threaten 130,000 American jobs tied directly to auto manufacturing, plus an additional 310,000 indirectly related jobs, by 2030. The research shows that these job losses would impact manufacturing states across the country, with particularly severe effects in areas that have attracted billions of dollars in investment in electric vehicle and battery manufacturing, including Michigan, Texas, Tennessee, Nevada, and California.
This week, there are plans to implement 25% tariffs on imported vehicles in the United States to encourage the on-shoring of manufacturing jobs. But ICCT’s new study, “How the Inflation Reduction Act is driving U.S. job growth across the electric vehicle industry,” demonstrates there is already a policy in place that has begun a manufacturing renaissance, with billions in investment already announced and American jobs already materializing. Specifically, this study examines the potential economic impact of repealing key EV-related tax credits, finding that the elimination of these provisions could dramatically slow the transition to electric vehicles and undermine domestic manufacturing growth and job creation.
“Rolling back provisions of the IRA could cause up to 130,000 American jobs to be directly lost from EV supply chains nationwide by 2030, and up to 440,000 jobs when considering additional indirect effects,” said Stephanie Searle, Chief Program Officer at ICCT. “These job losses would cascade throughout the economy, affecting not just autoworkers but also employees in mineral processing, retail, hospitality, and others dependent on a strong manufacturing base.”
Understanding that the shift to electric vehicles would cause changes in employment patterns, the study finds that IRA repeal would cause substantial overall job losses. There would be direct job losses of about 30,600 jobs in vehicle production, 85,000 jobs in battery manufacturing, and 14,200 jobs in charging infrastructure.
Since the passage of the IRA in 2022, industry has announced investments of approximately $125 billion in electric vehicle and battery manufacturing in the United States, supporting hundreds of thousands of jobs that could be at risk if the law’s key provisions were repealed.
“Most of the job losses associated with IRA repeal are in the Midwest and southern states, where significant EV and battery investments have been announced,” noted Peter Slowik, co-author of the report. “The 15 states where we project the greatest number of jobs at risk are Michigan, Texas, Tennessee, Nevada, California, Kentucky, Georgia, Ohio, Indiana, North Carolina, South Carolina, Illinois, Arizona, New York, and Alabama.”
The research finds that Michigan, Texas, and Tennessee would be the most heavily impacted. These states have seen substantial investment in vehicle and battery production. IRA repeal could mean that Michigan could lose close to 16,000 jobs, while Texas and Tennessee could each face losses of nearly 13,000 jobs.
The report comes as concerns over policy uncertainty already appear to be affecting industry decisions. Numerous automakers and battery companies have publicly pointed to the IRA tax credits as a major factor in their U.S. investments and have reconsidered billions of dollars of investment due to the uncertainty around their repeal.
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Media contact
Kelli Pennington, Global Communications Manager, communications@theicct.org
Publication details
Title: How the Inflation Reduction Act is driving U.S. job growth across the electric vehicle industry
Authors: Anh Bui, Logan Pierce, Peter Slowik, and Stephanie Searle (International Council on Clean Transportation), and Robbie Orvis (Energy Innovation Policy & Technology)
Please use this link when citing the report: https://theicct.org/publication/how-the-ira-is-driving-US-job-growth-across-the-electric-vehicle-industry-apr25
About the International Council on Clean Transportation
The International Council on Clean Transportation (ICCT) is an independent research organization providing first-rate, unbiased research and technical and scientific analysis to environmental regulators. Our mission is to improve the environmental performance and energy efficiency of road, marine, and air transportation, in order to benefit public health and mitigate climate change. Founded in 2001, we are a nonprofit organization working under grants and contracts from private foundations and public institutions.
Find us at:
www.theicct.org
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