The headline of this blog post is the same as that of a recent article from The Verge. The new EV tax credit is contained in the wasteful and misnamed “Inflation Reduction Act.” The legislation includes a $7,500 tax break for the purchase of electric vehicles.
But, the rules are written in such a way as to effectively disqualify every EV that’s currently on the market today because the rules adopted in the legislation mandate that eligible vehicles use batteries that are made in North America.
China currently produces 76 percent of the world’s lithium-ion batteries, while the U.S. produces only 8 percent.
Automakers could ask for waivers from the requirements, given the precedent that allowed many manufacturers to avoid “Buy America” rules that were enacted as part of last year’s bipartisan infrastructure law, according to Politico.
The obvious solution is for the US to increase domestic mining for lithium and other components of EV’s, but the very same “environmental” groups pushing EV’s tend to be the loudest in shutting down proposed mining operations.