New bill aims to make all electric vehicles in the US immediately eligible for federal subsidies

[Redaktion]

The US$7,500 new EV tax credit may become immediately available to all electric car buyers in the US if Representatives Terri Sewell (AL-07), Emanuel Cleaver (MO-05), Eric Swalwell (CA-15), and Jimmy Gomez (CA-34) manage to pass their Affordable Electric Vehicles for America Act. The bill aims to postpone all made-in-America vehicle assembly and battery component subsidy requirements by 3 years.

https://www.notebookcheck.net/New-bill-aims-to-make-all-electric-vehicles-in-the-US-immediately-eligible-for-federal-subsidies.666796.0.html

[ricegf]

If vehicle manufacturers are "frantically" moving their EV manufacturing lines to the US, why would we want to change the law? It's working too well?

[Laird Popkin]

If vehicle manufacturers are "frantically" moving their EV manufacturing lines to the US, why would we want to change the law? It's working too well?

For perspective, about 75% of EV's sold in the US use batteries made in the US. But that's largely due to Tesla's Gigafactory Nevada, with tesla responsible for about 80% of US EV sales.

I think the idea is that if the other manufacturers have a little more time to move production to the US, it'll go better. I can see both sides - if companies are losing sales/money in 2023 due to these provisions, and can't get their supply lines all moved over until 2024, they're basically being penalized for the limited battery production currently in the US, and the time it takes to get a new factory built and ramped up. It'll be fine for Tesla, who has the most committed battery production in the US by a wide margin, but that means few batteries are left for everyone else. GM, Ford/SK, etc., are ramping up US battery production, but it takes a while for factories to be built and ramped up, so they might miss out on a year's subsidies compared to Tesla.

It also has a weird side effect that it will incentivize EVs to use the battery technologies/chemistry in production in the US, and not the sometimes-superior technologies in other countries, such as LFP batteries from CATL in China. LFP production is underway in the US, but it might take a year or two...

[ky]

If vehicle manufacturers are "frantically" moving their EV manufacturing lines to the US, why would we want to change the law? It's working too well?

For perspective, about 75% of EV's sold in the US use batteries made in the US. But that's largely due to Tesla's Gigafactory Nevada, with tesla responsible for about 80% of US EV sales.

I think the idea is that if the other manufacturers have a little more time to move production to the US, it'll go better. I can see both sides - if companies are losing sales/money in 2023 due to these provisions, and can't get their supply lines all moved over until 2024, they're basically being penalized for the limited battery production currently in the US, and the time it takes to get a new factory built and ramped up. It'll be fine for Tesla, who has the most committed battery production in the US by a wide margin, but that means few batteries are left for everyone else. GM, Ford/SK, etc., are ramping up US battery production, but it takes a while for factories to be built and ramped up, so they might miss out on a year's subsidies compared to Tesla.

It also has a weird side effect that it will incentivize EVs to use the battery technologies/chemistry in production in the US, and not the sometimes-superior technologies in other countries, such as LFP batteries from CATL in China. LFP production is underway in the US, but it might take a year or two...

the problem is, existing bill and this propose amendment will not help "lower" the cost of EV.  they ones that qualify for the credit, they will jack up their price pretty much of the full credit and blame it on supply chain.  the ones that dont qualify, their price remains the same to stay competitive.

[Dave W]

If passed, would cars sold before Jan 1, 2023?

[Fred R]

I haven't seen it stated definitively anywhere that current Tesla battery production is compliant with the IRA battery requirements. That is, that 40% of materials and 50% of components are from approved countries. Your article suggests this with the statement that Tesla dominates the current battery "made in US" requirement due to the Nevada Gigafactory site. However, does this means that enough of the materials and components are sourced correctly for Tesla to claim compliance?  Thanks.