The clean energy transition is increasing the demand for electric vehicle (EV) batteries. In 2022, the US passed the Inflation Reduction Act (IRA) aiming to reshore and friendshore the battery supply chain, and to de-risk from dependence on China. The IRA and any follow-on permutations thereof such as the One Big Beautiful Bill Act (OBBBA) are expected to impact the source, and consequently, the environmental footprint of battery materials and components. As new policies and regulations reshape the battery supply chain, they could lead to unintended and potentially negative sustainability impacts for new EV batteries if applied indiscriminately. The current study uses life cycle assessment to estimate the environmental footprint of NMC811 cells under different supply chain scenarios. These scenarios reflect offshoring and friendshoring the battery supply chain, reshoring battery manufacturing, and reshoring battery materials production. Further, this study explores paths to reduce the environmental footprint of 100 % US-made batteries using renewable energy sources during production. For the scenarios considered, the results show that offshoring and friendshoring the battery supply chain can lead to the highest and lowest environmental impacts, respectively. Reshoring battery manufacturing and using 1.15 Wp/kWh NMC811 cell produced can reduce the carbon footprint of a US-made 70 kWh NMC811 LIB pack by 2.45 tons CO2-eq and the water consumption by 5584 L. The outcomes of this work inform policymakers on the complex environmental consequences of supply chain decisions and identify pathways to mitigate these environmental consequences through selective material sourcing and implementation of renewable energy sources.
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