Energy policies play a critical role in shaping the development, adoption, and technological advancements of EV batteries. Governments worldwide are driving this transformation through incentives, regulations, infrastructure investments, and R&D funding. At CM Batteries, a leading custom battery pack manufacturer with 15 years of experience, we understand how these policies impact our clients in E-mobility, medical, power tools & robotics, IoT, environmental, and marine industries. In this blog, we’ll explore how energy policies are driving the growth of EV batteries and how CM Batteries align with these trends to deliver high-quality, customized solutions for your unique needs.
Incentives
Governments around the globe provide subsidies and incentives to consumers, manufacturers, and developers to stimulate the growth of the EV battery industry.
In 2022, the United States approved the Inflation Reduction Act (IRA), which provides significant tax credits for EV buyers and incentives for domestic battery production. The IRA provides consumers with up to $7,500 in tax credits for purchasing EVs, and battery manufacturers receive tax credits for producing in and sourcing materials locally to reduce reliance on foreign battery supply chains and boost domestic production capacity.
The European Union’s Battery Passport, a key component of the EU’s Green Deal, was approved in 2023 and will be implemented by 2027. This provision will establish digital tracking system mandates that require all EV batteries sold in the EU to provide detailed lifecycle data, ensuring compliance with environmental standards and sustainability benchmarks.
China has been a global leader in EV subsidies for decades. Although now expired, China’s New Energy Vehicle (NEV) Subsidies (2010-2022) helped its nation become a global leader in EV adoption and investment in EV battery technology.
Regulations
Stricter emission regulations are pushing industries to transition to cleaner energy solutions. CM Batteries’ products are designed to meet these evolving standards while excelling in challenging environments.
E-mobility: California’s Advanced Clean Cars II rule mandates 100% zero-emission vehicle sales by 2035. CM Batteries’ high-performance battery packs operate reliably in extreme temperatures (-40°C to 85°C), making them ideal for electric vehicles in diverse climates.
Medical and IoT: The EU’s Euro 7 emission standards emphasize low emissions and high reliability. CM Batteries’ battery packs are engineered for precision and durability, ensuring compliance with these regulations in medical devices and IoT applications.
Marine and Environmental: Our waterproof and dustproof battery solutions are designed for harsh environments, such as underwater or high-humidity conditions, ensuring compliance with environmental regulations while delivering unmatched performance.
Infrastructure
Better infrastructure means faster adoption of EVs. The United States NEVI program, launched as part of the Bipartisan Infrastructure Law (2021), allocates $7.5 billion for a nationwide EV charging network. The European Alternative Fuels Infrastructure Regulation (AFIR), adopted in 2023, mandates that charging stations be installed every 60 km (37 miles) along major EU highways by 2025. China is the global leader in EV battery swapping stations and hopes to have 16,000 nationwide by 2025.
Development
Investment in research and development paves the way for future efficiency worldwide. In 2023, the U.S. Department of Energy (DOE) established the Battery Materials Research Program and committed $3.1 billion toward improving domestic battery supply chains, including R&D for next-generation technologies such as solid-state batteries and lithium-sulfur batteries. The EU Battery Innovation Roadmap, launched in 2022, aims to increase battery energy density, recyclability, and use of non-rare materials by 2030. China’s 14th Five-Year Plan (2021-2025) prioritizes solid-state battery development and other future innovations to ensure China remains a leader in the EV space.
As global energy policies continue to drive the growth of EV batteries, CM Batteries is your trusted partner for high-quality, customized battery solutions. Whether you’re in North America, Europe, or beyond, we deliver products that meet the highest standards of performance, reliability, and sustainability.
If you’re looking for battery solutions that excel in extreme temperatures, harsh environments, or specialized applications, contact CM Batteries today. Let us power your innovation with cutting-edge technology and unparalleled expertise.
