According to a consortium of major manufacturers, most electric-vehicle models would be ineligible for a $7,500 tax credit for US purchasers under a Democratic plan in the US Senate. Privately, automakers have expressed alarm about the proposal’s rising requirements for vehicles’ batteries and critical-mineral ingredients to be obtained from the United States. According to John Bozzella, president of the Alliance for Automotive Innovation, which represents General Motors, Toyota Motor, and Ford Motor, among others, a July 27 proposal by Senators Chuck Schumer and Joe Manchin would make 70% of 72 U.S. electric, plug-in hybrid, and fuel-cell EVs ineligible if passed.
“A more progressive phase-in of the battery component, crucial mineral, and final assembly needs, which better reflect contemporary geopolitical, sourcing, and mineral extraction realities,” Bozzella noted. Automakers want NATO nations, Japan, and others to be included to the list of countries from which batteries, battery components, and essential minerals can be acquired.
The proposed EV tax credits, which would expire at the end of 2032, would be limited to trucks, vans, and SUVs with suggested retail values of no more than $80,000, as well as automobiles with suggested retail prices of no more than $55,000.