Marketplace Tech What the "Big Beautiful Bill" means for U.S. energy
Jul 21, 2025
Jeremy Michalek, a Professor of Engineering and Public Policy at Carnegie Mellon University, discusses the implications of President Trump's Big Beautiful Bill on U.S. energy. He highlights the phase-out of clean energy incentives and the rising demand for energy driven by technology. Michalek examines how this bill risks increasing U.S. dependence on China for battery production. He also contrasts fossil fuels and renewable energy's roles in the future, addressing the broader economic and national security challenges of relying on critical minerals.
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Impact of Big Beautiful Bill on EV Batteries
- The Inflation Reduction Act incentivized domestic production in the EV battery supply chain to reduce China's dominance.
- The Big Beautiful Bill removes many of these incentives, potentially weakening U.S. battery manufacturing onshoring.
Global Battery Transition Continues
- Reducing battery production incentives might decrease U.S. battery imports in the short term.
- But global transition to batteries will continue, mainly driven by China, potentially sidelining the U.S.
China's EV Rise Through Batteries
- China aggressively invested in EVs and batteries, quickly gaining global market dominance.
- Cheaper, better batteries enabled China to leapfrog established automakers including the U.S.