This report reviews the new incentives for production of batteries, electric vehicles, renewable energy generation and transmission equipment, and other renewable energy products provided under the Biden Administration’s Inflation Reduction Act (IRA) and parallel public programs.

Many other industrial countries, including the EU, China, Japan, Korea, and Canada have also quickly implemented major new policies to respond to the impact of these U.S. measures, and support the expansion of production in those countries of manufactured products and technologies for renewable energy systems.

The report provides evidence that the U.S. incentives and content requirements are sparking an unprecedented expansion in manufacturing investment in the U.S. The extraordinary economic response to these measures confirms they are having an outsized effect on the volume and location of sustainable manufacturing investment. It also confirms that Australia must move quickly to respond to this new industrial landscape, or risk losing its chance to leverage its abundant renewable energy resources into lasting, diversified industrial development.