This chapter provides an overview of the status of the U.S. automotive industry’s progress toward electrification, as well as the policy drivers and implications involved. The pace of electrification in the United States has trailed that of Europe and China, driving urgency in government policies intended to incentives automakers and consumers to make the change, while penalizing products with negative environmental impact. This chapter explores the implications of global shifts toward vehicle electrification in the United States, the complex political and economic considerations of an electric vehicle battery supply chain that is currently dominated by China, and recent U.S. trade, environmental, and industrial policy responses. The research examines how the shift in policies currently supports the growth of EV and battery manufacturing in the United States as well as resulting investment patterns and their regional distribution.