Manchin slams Biden’s EV tax credit rule as ‘outrageous, illegal’

TL/DR –

Senator Joe Manchin has criticized the Biden administration’s interpretation of which vehicles can qualify for electric vehicle tax credits, arguing that it allows for too much Chinese material in batteries. The new interpretation of the Inflation Reduction Act drops the restriction on credits for vehicles with batteries containing materials from China, North Korea, Russia, or Iran. Proponents of the change argue that it provides crucial flexibility for electric vehicle producers as they establish their supply chains.

Sen. Joe Manchin Criticizes Biden Administration’s Electric Vehicle Tax Credit Rules

Democratic Sen. Joe Manchin has criticized the Biden administration’s new definition of eligibility for electric vehicle tax credits. He argues it provides too much room for batteries made with Chinese materials. “The Administration is breaking the law in its rush to flood the market with electric vehicles,” said Manchin.

The new rule was issued on Friday by the Biden administration. It relaxes the Inflation Reduction Act’s restrictions that prevent the eligibility of vehicles with batteries containing materials from China, North Korea, Russia, or Iran.

The rule permits a two-year carve-out for untraceable minerals appearing in small quantities. It also extends this exemption to graphite, a significant element in an EV battery, often sourced from China.

Manchin believes the rule allows these countries “to remain in our supply chains” long-term. He called it “outrageous and illegal.”

Supporters of the rule insist flexibility is essential to give EV producers sufficient time to strengthen their supply chains. Manchin, a crucial swing vote on the Inflation Reduction Act, has repeatedly voiced objections to how the Biden administration has implemented the tax credits, including credits for EV chargers and hydrogen energy.

—
Read More US Economic News