The Inflation Reduction Act now approaching final approval in Congress includes a well-intended tax credit of up to $7,500 if you purchase an electric vehicle.
The goal, of course, is to make it more affordable for people to switch to environmentally friendly vehicles as part of efforts to battle climate change.
But, Washington being Washington, lawmakers wrote the law in such a way that most EV buyers won’t qualify for the assistance.
That’s because, to get the full $7,500 credit, the high-tech battery used in your EV must be built in North America with minerals mined or recycled on the continent.
That’s a high bar.
EV batteries contain lithium. Most lithium comes from China.
They also contain cobalt. Most cobalt comes from the Democratic Republic of Congo.
And the percentage of locally sourced minerals required by the law only goes up over time. https://ktla.com/news/nationworld/heres-why-most-evs-wont-qualify-for-new-ev-credit/
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