For its first manufacturing plant, Moshiel Biton’s battery technology start-up, Addionics, has turned not to Europe or Asia, but the US. The decision allows his Israel-based company to benefit from the $370bn of funding offered by the US to claw back domestic production of electric cars and, crucially, batteries. “With the incentives that the US government is providing, it’s a crime not to try to do it in the US,” he says. “We haven’t found any other location that provides similar incentives.
This is a lesson learnt from the UK which, for years, struggled to attract auto investors after losing many of its parts suppliers to lower-cost regions. Some of the largest US names are adapting. Around a quarter of Michigan-based Borg Warner’s global plants are “zebra” factories, which make electric car parts on the same line as those destined for engine vehicles. The set-up allows the company to flex supply based on demand, easing the long process of winding down its legacy products.
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