US Automakers Get EV Sourcing Reprieve
Treasury department gives them three extra years to comply with stricter rules, potentially making more EVs eligible for tax credits.
Automakers now have more time to comply with rules governing sourcing of battery materials, such as graphite, of which China has the majority of the world’s supply.
Pexels/Kindel Media
The Biden administration has temporarily eased rules restricting electric-vehicle battery materials from China and other countries classified as Foreign Entities of Concern, potentially making more models eligible for tax credits.
The treasury department delayed enforcement of the restrictions, which officially took effect Jan. 1, until 2027, giving automakers more time to comply with rules governing sourcing of battery materials, such as graphite, of which China has the majority of the world’s supply.
The rules are tied to federal tax credits of up to $7,500 per EV and had sharply cut the number of EVs eligible for the breaks. Now carmakers can source some battery materials from the restricted countries while they work toward compliance in three years.
The government has been trying to wean the U.S. economy from Chinese suppliers through such restrictions, along with incentives for domestic production of EV materials.
More tax credits could buoy EV sales, which have waned in recent months, both in the U.S. and Europe.
Originally posted on Auto Dealer Today
More Industry
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →