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continues to be a leader on EV innovation and production." GM, in a statement Thursday, said it looks forward "to working with Congress on these provisions that would ensure a level playing field for all OEMs, incentivize consumer adoption of future electrified options and ensure the U.S. The tax credit would apply to battery-electric, plug-in hybrid and fuel cell vehicles that meet the various requirements. Mazda currently offers only one fully electric vehicle, the MX-30 - a 100-mile-range crossover being rolled out in limited volume to customers in California - compared with competitors such as GM, Ford Motor Co. "We are concerned that the provisions on batteries and critical minerals will be very difficult to meet in the timelines required, as the overall industry works to build additional capacity in North America." "The goals of tax credits should be to help build the overall market for EVs and help meet President Biden's goals of 50 percent EV sales by 2030," said Daniel Ryan, vice president of government and public affairs at Mazda North American Operations. Sourcing requirements would increase to 80 percent after 2026 for critical minerals, and by 2029 would require 100 percent of the battery components to be made or assembled in North America.įinal assembly of the vehicle must occur within North America - a provision that would apply immediately after the bill is enacted.Īutomakers including General Motors and Mazda as well as several industry trade groups were still reviewing details of the tax credit proposal on Thursday. In 20, 60 percent of the battery components must be made or assembled in North America.
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has a free trade agreement in effect or from materials that were recycled in North America. such as Canada and Mexico - a caveat aimed at reducing reliance on China.īy 2024, the proposal calls for 50 percent of the critical minerals used in EV batteries to be extracted or processed in the U.S. WASHINGTON - A Senate proposal released Wednesday would extend the current $7,500 tax credit for consumers buying new electric vehicles but add increasingly stringent critical mineral and battery sourcing requirements for automakers.Īs part of the tax credit, automakers would be subject to annual increases in sourcing requirements for critical minerals and battery components used in eligible EVs and limited to sourcing from countries with a free trade agreement with the U.S.