While other major auto manufacturing countries and regions like China, South Korea, Japan, and the European Union have a head start in cementing their position in the global EV supply chain, demand for EVs continues to outpace production, which means there is still time and space for the U.S. to play a leadership role in the global EV supply chain of the future. The Clean Vehicle Tax Credit – with its final assembly, critical mineral, and battery content requirements – pushes automakers to support this goal. Meanwhile, historic manufacturing investments from the Bipartisan Infrastructure Law (BIL), the CHIPS and Science Act, and the Inflation Reduction Act direct billions of dollars toward the domestic automotive supply chain, enabling automakers to achieve the tax credit targets. Provisions in the BIL like the $6 billion Battery Processing & Manufacturing Grant Program, alongside the Inflation Reduction Act’s $3 billion Advanced Technology Vehicle Manufacturing Loan Program, the $1 billion Domestic Manufacturing Conversion Grant Program, the 48C Advanced Energy Project Tax Credit, and the
45X Advanced Manufacturing Production Tax Credit, all bring the Clean Vehicle Tax Credit’s ambitious-but-achievable assembly and supply chain targets into view.
The IRS and Treasury Department should work to make these tax credits available as swiftly as possible to ensure that auto supply chain facilities can plan their investments to meet the critical mineral and battery component requirements of the updated Clean Vehicle Tax Credit.
See the comments.