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Biden grants automakers some flexibility on battery minerals in final EV tax credit rules
Imperceptible minerals, like graphite, won’t count until 2027.
The final guidance, which was released today, gives car companies a two-year exemption from provisions in the Inflation Reduction Act (IRA) intended to disqualify EVs with battery minerals from countries like China, Russia, Iran, and North Korea — so-called “foreign entities of concern” (FEOC). The auto industry pushed the administration to back off the tax credit’s more restrictive rules about trace minerals, arguing it would be almost impossible to meet them under the previous timeline. “Imagine an EV that complied with all IRA eligibility requirements but is kicked out of the program because of a trace amount of a critical mineral from an FEOC?” John Bozzella, CEO for the Alliance for Automotive Innovation, which represents most of the major car companies, said in a statement.
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