Models included are the 2022 Ford F Series electric pickup, BMW X5, Nissan Leaf, Chevrolet Bolt, Jeep Wrangler plug-in hybrid, and all four Tesla models.
As of Tuesday, tax credits will no longer be available for vehicles assembled outside of the U.S., Canada or Mexico. But people who signed purchase contracts for EVs before Tuesday could still get the credits. The remaining electric vehicle provisions of the law are effective Jan. 1.A Treasury official told reporters on a call Tuesday that the plan puts the U.S. 2030 climate goals within reach and will help ensure Americans can afford to buy an electric car.
“We are working overtime to localize our supply chains and ramp up production,” Chris Smith, chief government affairs officer at Ford, said in a statement.The credits are important because no automaker wants to be in a position of seeing a competitor sell vehicles at a $7,500 price advantage, especially since the credits largely target middle-class buyers.
And those rules become more stringent over time — to the point where, in a few years, it’s possible that no EVs would qualify for the tax credit, said the Alliance of Automotive Innovation, a key industry trade group. As of now, the alliance estimates that about 50 of the 72 electric, hydrogen or plug-in hybrid models that are sold in the United States wouldn’t meet the requirements.Under the $740 billion economic package that Biden signed into law, the tax credits would take effect next year.
The idea behind the requirement is to incentivize domestic manufacturing and mining, build a robust battery supply chain in North America and lessen the industry’s dependence on overseas supply chains that could be subject to disruptions.But production of lithium and other minerals that are used to produce EV batteries is now dominated by China. And the world’s leading producer of cobalt, another component of the EV batteries, is the Democratic Republic of Congo.
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