The US government’s policy of excluding electric vehicles with Chinese batteries from sales incentive payments has led to a growing movement to develop battery production bases for electric vehicles in the US, and competition for investment incentives among state governments is intensifying.

In the eAxle sector, the number of factories manufacturing motor cores in Canada and Mexico has been increasing since the mid-2000s in order to avoid anti-dumping duties. The number of Tier 1 component manufacturers increasing their eAxle production in Mexico is increasing as major car manufacturers increase their electric vehicle production capacity in the North American region.

Mexico is also expected to see a further concentration of component manufacturers in Mexico as Tesla prepares to produce low-cost BEVs.

The optimisation of the North American green supply chain is required to produce internationally competitive electric vehicles in North America while taking advantage of policy incentives, including the IRA Act and the USMCA, and avoiding regulations and restrictions. This report clarifies the green (electric component) supply chain in the North American region and looks at the green supply chain network of each company.