Federal tax credits boosting Tennessee’s battery supply chain

Federal tax credits from the Inflation Reduction Act are fueling big growth in Tennessee’s battery supply chain.

The Volunteer State has become a major hub in battery production with 11 manufactures in the state. For example, in Clarksville, LG Chem is investing $1.7 billion in a facility to produce cathode materials for electric-vehicle batteries.

Xan Fishman, energy program senior managing director for the nonprofit think tank Bipartisan Policy Center, said clean energy tax credits are driving investments in Tennessee’s battery industry…

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