Quote:
Originally Posted by JSH
In 2023 the law requires 40 percent of the critical minerals used in EV batteries to be extracted or processed in the U.S. or a country where the U.S. has a free trade agreement in effect or from materials that were recycled in North America
The bold text could be a loophole large enough to drive a Korean made battery celll through.
Materials are a bit fungible. It helps that the USA has a small EV market share vs. Europe and China. If a supplier gets 15% of their lithium from Chile and the rest from another countries they can say the batteries shipped to the USA have the Chilean lithium. Likewise if Bolivian lithium is processed in Korea (or the USA, or Mexico) it is good. Extracted OR processed - no doubt the auto industry worked hard on that language.
Ford and GM are looking pretty good for 2023 with North American plants and Korean battery suppliers.
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Those are 2 separate rules on the batteries BOTH must apply to get $7500. If one applies then you get $3750, in none apply you get $0 even if the car itself is assembled in North America.
As it stands right now, I don't think any battery is going to qualify for the whole $7500 and it just gets worst going forward from 2023.
Do you really see the EPA authorizing some big Lithium mines here in the US in the style of the Berkley Pit 2.0?