Battery and minerals criteria for EV tax credits, by the digits

100%: Battery component standard by 2029 after gradual, annual increases

56%: Share of EV batteries in the market produced by Chinese companies currently

80%: The maximum threshold for the mineral requirement, which will be reached in 2027


1%: Share of global lithium output produced by the US

Mapped: Where EV makers can source critical minerals from


P.S. The US is brokering a critical minerals free trade agreement with the European Union.

Quotable: Reducing dependence on foreign EV batteries

“Given the extremely high concentration of Chinese control over critical mineral processing globally, strengthening our supply chains for critical minerals along with like-minded partners is vital for the growth of the clean energy economy.” —Lily Batchelder, the Treasury’s assistant secretary for tax policy, told reporters on March 23


Can foreign carmakers get on the list?

Several foreign brands do not qualify for the new tax credit. However, that could change in the coming months and years, as some of them build out US factories. For instance, Hyundai is building a $5.5 billion plant in Georgia, which will assemble EVs and produce batteries. The targeted annual output is 300,000 Hyundai, Genesis, and Kia EVs starting in 2025. BMW is investing $1.7 billion to build cars and batteries.


But they have to adhere to the mostly-US supply chain rules. Vehicles that contain battery parts from “a foreign entity of concern”—a classification that includes China, Russia, Iran and North Korea—will be unable to claim any of the credit starting Jan. 1, 2024. The clause will apply to critical mineral sourcing the following year.

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