The US Treasury Department and the Internal Revenue Service (IRS) have again changed the rules of the bonus program for electric vehicles. This will allow more electric vehicles to qualify for the federal incentives. Currently, only 22 out of 104 electric cars on the US market have this right.
The Biden administration's reform aimed at accelerating the electrification of the US car fleet began in 2023. One of the first steps taken to this end was the removal of the limit of 200,000 cars per manufacturer. A maximum retail price to claim the bonuses was also established. Thus, the luxury models "for the rich" were removed from the scope of this norm.
To receive the bonus, the vehicle must be assembled in North America. There are also separate requirements related to batteries. In particular, they refer to the gradual increase in the share of materials and components that are produced in North America and in countries with which the United States has entered into a free trade agreement.
The latter was the most problematic for manufacturers. Especially in terms of tracking the sources of battery materials. For this, battery passports were introduced. Automakers have frantically sought North American battery suppliers.
Now, in the updated rules until 2027, the norms regarding the sources of graphite, electrolyte salts, binders and additives have been relaxed. This will allow more electric vehicles to retain access to much-coveted government subsidies. In particular, critical minerals and battery components must be 80% "American" by 2027, but this will happen gradually. This year it will be 50%, next year 60%.
So far, many car manufacturers and battery suppliers have invested in sourcing and processing materials in North America. For example, General Motors and Panasonic have invested in Nouveau Monde Graphite, which aims to become a new source of processed graphite in the local market.