Thursday, 04 August 2022 13:55

Automakers Suggest Changes to Potential U.S. EV Tax Credit

Written by Steven Loveday, InsideEVs


Share This:


It seems every time politicians put their heads together to come up with a new electric vehicle tax credit, there are unhappy automakers.

While the credit simply can't work to make everyone happy, there are essential considerations that should arguably be presented to the politicians before they move forward.


Some automakers are now urging U.S. Sen. Joe Manchin, D-WV, to rework the proposed EV tax credit. The current language includes sourcing requirements for battery materials, which may make it difficult for most automakers to comply in a timely manner.


It seems the current tax credit proposal focuses more on company sourcing than it does on helping consumers. We've seen this in the past. Each time politicians present new ideas related to an updated EV tax credit, it seems to be all politics and very little to actually help people afford an EV.


The current proposal aims to force automakers to extract and process EV battery materials in North America, rather than in China and other areas. This isn't something many automakers feel they have the capability to do, at least not immediately.


However, according to Automotive News, Manchin appears uninterested in making any changes. He said the U.S. produces its own gas-powered engines and cars, so it should be able to do the same with EVs.


"Tell [automakers] to get aggressive and make sure that we're extracting in North America, we're processing in North America and we put a line on China," Manchin shared with the media. "I don't believe that we should be...

Previous Page Continue reading »