https://www.wsj.com/articles/joe-manchin-inflation-reduction-act-green-subsidies-president-biden-5b168948?mod=opinion_lead_pos1
We interrupt the latest Donald Trump melodrama for a word from Biden Administration regulators. While the world isn’t watching, and certainly the press corps isn’t, regulators on Friday announced they are essentially rewriting last year’s Inflation Reduction Act so more electric vehicles will qualify for subsidies.
In return for his vote, West Virginia Sen. Joe Manchin insisted on numerous conditions for the IRA’s $7,500 EV tax credit. He wanted to encourage more U.S. manufacturing and ensure subsidies don’t go to the affluent. The law imposed an income limit to qualify for subsidies of $150,000 for individual EV buyers, as well as a price cap for vans, SUVs and pickups ($80,000), and sedans ($55,000).
To qualify for $3,750 of the credit, an increasing share of a vehicle’s battery minerals such as lithium and nickel also had be extracted or processed in the U.S. or in a country with which the U.S. has a free-trade agreement. The other half of the credit was supposed to be available only for vehicles in which a majority of its battery components are made in North America, starting at 50% this year and up to 100% by 2029.
Few cars currently on the market were expected to qualify for even half of the credit. Most minerals are mined and processed in countries with which we don’t have trade agreements, such as China, Indonesia and the Democratic Republic of Congo. Key battery components—namely, active anode and cathode materials—are mostly produced in China, Japan and South Korea.