Automakers are not too happy with Senator Manchin’s EV tax credit proposal

Automakers aren’t too happy with Senator Manchin’s EV tax credit proposal. Reuters reported that several automakers want the Democratic Senator to revisit the proposal to restructure the $7,500 EV tax credit. Fears over new sourcing requirements for battery components and critical minerals are the key reasons.

In a response to reporters, the senator said that automakers need to be aggressive and use materials extracted from North America.

Manchin thinks automakers need to “get aggressive”

“Tell (automakers) to get aggressive and make sure that we’re extracting in North America, we’re processing in North America and we put a line on China.”

“I don’t believe that we should be building a transportation mode on the backs of foreign supply chains. I’m not going to do it.”

Automakers Are Upset

General Motors said Friday that “some of the provisions are challenging and cannot be achieved overnight.” It added that it was “encouraged by the framework laid forth in the legislative text.”

Rivian’s Vice President of public policy, James Chen, pointed out that this legislation wouldn’t be good for consumers who were wanting an American-made EV.

“As currently drafted, this legislation will pull the rug out from consumers considering purchase of an American-made electric vehicle. The final package must extend the transition period to provide consumer choice and protect good-paying manufacturing jobs here at home.”

John Bozzella with the Alliance for Automotive Innovation told Reuters that he was having good conversations when asked if automakers had submitted specific changes to Manchin.

Senator Rubio plans to file an amendment on one condition.

Senator Marco Rubio said that he will file an amendment seeking to ensure EV credits can apply only on one condition.

The EV battery’s critical minerals need to be sourced in the U.S. or a country with which the U.S. has a free trade agreement.


Johnna Crider: Johnna Crider is a Baton Rouge writer covering Tesla, Elon Musk, EVs, and clean energy & supports Tesla's mission. Johnna also interviewed Elon Musk and you can listen here
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