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How the Inflation Reduction Act is driving U.S. job growth across the electric vehicle industry – International Council on Clean Transportation
Aug
Report
April 1, 2025 |
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Industry investments and consumer incentives from the Inflation Reduction Act (IRA) are strengthening American leadership on cars and trucks, driving job creation across the U.S. transportation sector, and expanding consumer choice and economic benefits. Since the passage of the IRA in 2022, the automotive industry has announced investments of about $125 billion in electric vehicle (EV) and battery manufacturing in the United States. These investments will support hundreds of thousands of jobs while promoting the competitiveness of the American auto industry amid the global transition to EVs. These jobs and the global industrial competitiveness of the U.S. auto industry are at risk, however, with the recent interest in Congress in repealing EV related provisions in the IRA.
This report assesses the impact of a repeal of key EV-related IRA tax credits on jobs in the United States through 2030. First, we project the number of new U.S. jobs that would be created under the IRA from 2026 through 2030. We then analyze the impact that an IRA repeal would have on EV sales in the United States through 2030. We next estimate the net change in the manufacture of EVs and internal combustion engine vehicles (ICEVs), as well as the loss in battery manufacturing and charging infrastructure installation and maintenance. From this, we quantify the net change in employment that would result directly in each of these industries from IRA repeal.
Figure 1 summarizes our findings on the job growth that would occur from 2026 through 2030 (compared with 2024) with and without the EV-related provisions in the IRA. Each bar shows the impacts in the vehicle production, battery manufacturing, and charging infrastructure industries, with the net impact across all three sectors indicated by a gray circle. We project that the IRA would drive a net creation of more than 118,000 new direct jobs across the U.S. vehicle, battery, and charging industries from 2026 to 2030. The repeal of the IRA would lead to a net loss of approximately 130,000 jobs in 2030 compared with a case with the IRA. We find that, if the IRA were repealed, there would be a net loss of jobs that exist today, starting in 2026.
Figure 1. Projected growth in U.S. jobs compared with 2024 under the With IRA and Without IRA scenarios
Figure 2 breaks down the net employment changes resulting from IRA repeal in each industry for the top 15 affected states in 2030. IRA repeal would lead to a loss of between 10,000 to 16,000 jobs in each of the top 5 states most affected, with 14 states projected to experience losses of more than 2,000 jobs by 2030.
Figure 2. Net impact on jobs in 2030 with IRA repeal in the most impacted 15 states
From this analysis, we find that:
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IRA repeal threatens 130,000 American Jobs by 2030
April 1, 2025
Analyzing the impact of the Inflation Reduction Act on electric vehicle uptake in the United States
January 31, 2023
Projected growth in U.S. jobs compared with 2024 under the With IRA and Without IRA scenarios
April 1, 2025
Net impact on jobs in 2030 with IRA repeal in the most impacted 15 states
April 1, 2025
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