The United States government has introduced multiple initiatives this year intended to promote production of EVs, and the mining of the materials needed to produce them, in the United States. These efforts include the Inflation Reduction Act (IRA), grants distributed to manufacturing and processing companies, and the American Battery Materials Initiative. Now, as a result of these initiatives, GM electric vehicles won’t be eligible for the full EV tax credit for a few years.
According to a report by Electrek, GM doesn’t yet have the capability to meet the full $7,500 tax credit that’s going into effect on January 1st, 2023. As of that date, GM EVs will only qualify for half the credit. GM is currently working to source battery minerals for the Chevy Bolt EV and Chevy Bolt EUV, as well as Ultium batteries, domestically. As the Detroit-based automaker is planning to launch new 30 electric vehicles by 2030, it must take advantage of the tax credit in order to reach more customers.
“We think, out of the gate, we’re going to be eligible for the $3,750, and we’ll ramp to have full qualification in the next two to three years, getting up to the $7,500.” said GM CEO Mary Barra.
As a quick refresher, the Inflation Reduction Act provides up to $7,500 in tax credit for eligible vehicles. However, aside from the purchase price, two conditions must be met if the EV is to qualify for the full credit:
- Minerals – Beginning in 2023, 40 percent or more of the critical minerals used in batteries must be manufactured or assembled in North America. This percentage rises by 10 percent every following year.
- Components – Beginning in 2023, 50 percent or more of the value of the EVs battery components must be manufactured or assembled in North America. This percentage rises by 10 percent every following year.
It’s important to note that if only one of these requirements is met, the EV will receive half of the $7,500 credit, as will be the case of GM for the time being.
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Comments
This is good, that it’s causing change in their practices. That’s part of the point.
Is there a way to get on a waitlist for the Equinox EV? I live in northern Michigan
Two to three years ? By then, the Political structure of the White House and both houses of Congress will have completely changed and, hopefully, the new Congress will put an end to this disgusting Socialist plan of passing out tax credits for buying vehicles.
Except look at all the red states that are benefitting from the huge investment manufactures are making in the US to develop batteries and EVs. No way these states will suddenly vote down the IRA considering this benefit. Now wake up and stop complaining.
Biggest complainer on here tells someone else to stop complaining lol you can’t make this stuff up if you tried.
Ahh, my stalker is back. Contributing nothing to this thread. Why don’t you actually make a useful comment by pointing out what is incorrect about my comment? Unfortunately you can’t so you make useless, hateful comments.
What a waste! Go stalk someone else!
Don’t flatter your self I’m pointing out facts. This is what you do constantly complaining about what others say.
Sure, lets screw the working guy who saved up his pennies to buy an EV so his children can breath clean air, while the “Socialist” fossil fuel industry gets $20 billion every year in subsidies from the US government. And while we are at it, cut out the federal subsidies for “Socialist” Farmers and for Homeowners who purchase a more efficient A/C or heat pump. God forbid you try to go Solar, then you must be Russian.
The socialist plan is corporate welfare. In a capitalist society, there should never be a safety net for publicly traded companies.
much harder to gut a piece of legislation than pass. it in the first place. first you have to find 60 Senate seats that will cooperate.
O.K. – You walk in and the sticker price is lets say $25000.00. you get half of the $7500.
Now, can you deal another 2500 off the sticker price ??? Thats the real question.??
I’m betting not going to happen……….
The days of deep discounts is over my friend. Dont believe me? Walk in to a Tesla salon, thats the future of retailing. The price you see is the price you pay. There may be some manufacturer rebate from time-to-time, but it will be priced into the MSRP anyhow.
GMs strategy on EV pricing has been revealed with the Bolt EUV; MSRP AND INVOICE ARE THE SAME! The dealer gets a small fee for handling the transaction, plus whatever else you buy in the F&I department. And its a better way to buy anyhow.
I don’t know if maximum Bob knows that the competition will keep his dream from coming true. GM isn’t Tesla. That was a unique situation from a very unique company. GM will never be unique anymore. Followers, not leaders.
The competitors will continue to grab market share and if GM doesn’t wise up, they will be a bit player. So dream on, competition will force prices for the average Joe down.
GM market share headed for an all time low, soon. Very soon. Sad for the employees of GM.
This move to electric crap will doom GM. They have lost their way. Minimum Mary is running the company into the ground.
Minivan market: gone to the competitors
Small car market: gone to competitors
Midsize pickup market: not the leader even with a better product
Maverick, Honda Ridgeline unitized pickup market: GM not competing at all (big mistake)
Pickup market: slipping to competitors like ram. (Scary)
Small suv market: way down to competitors
Large suv: competitive still (but better be careful)
Hybrids: gone completely to competitors.
Don’t forget-
2 door sports pony car- soon to be gone after 2024
No more manual transmissions after 2024
No more affordable coupes/sedans or hatches after the Malibu is gone in 2024
No ext cab or bed sizes with the new Colorado/Canyon.
They should really consider renaming this company ot swiss cheese motors for all the product holes they now have
It’s a slow start, but is a start, congratulations.
When the parts and materials are produced in North America and not rely on China or the likes, we will fully have satisfied customers!
We talk about Flagship Cadillac and Buick, we’re they produced in China??
We must not allow other countries to haul our manufacturing of vehicles.
I am on the wait list for a Cadillac Lyriq, My concern.
I get it the vehicle an a part malfunctions, that part is not available or manufactured in North America, this could be very embarrassing!!! My point!
Bud: At this time, there are zero Cadillac’s produced in China that are sold here. The Lyriq and upcoming Celestiq are both being assembled in the USA. I believe the Lyriq in TN and the Celestiq in MI.
Parts for cars have been produced in foreign countries for many many years. This is not new and not going to change soon from what I see. When it comes to buying cars, I’ve looked for years at a couple factors:
1. What is the brand?
2. Where is that brand located. What country are they from?
3. Where is the vehicle assembled?
4. Where does the profit go and/or stay?
Using those 4 factors, my first choice for buying is an American brand assembled in the USA. Second is an American brand assembled at a GM site outside the USA, preferably Canada, Mexico or S. Korea. My last 5 vehicles were a Buick Encore (US company assembled in S. Korea). Chevy Spark (US company assembled in S. Korea). Cadillac CT4 (US company assembled in US), Volvo S60 (foreign company assembled in US) and now my Malibu (US company assembled in US).
Thank you for your information. I appreciate your method of analysis.
I feel much more comfortable with my purchase.
It’s funny how this administration incentivizes mining as long as it is for batteries and other EV materials but says no to new oil and gas exploration.
Hey Troll – why incentivize oil and gas when the processes have existed for decades and the companies are reporting billions in profit?
Because it’s a slow process to get production going, and why would they do it if the current administration had been hostile to them going back to campaigning in 2020? Which was also a horrible year for oil companies. You take the good with the bad.
The manufacturing base must return to the U.S. for the sake of our national security.
GMC fan is nothing but a troll always has been always will be.
‘does anyone know which of the 2 requirements for battery components in the IRA does GM think it will comply with in 2023 making Bolts eligible for half of the $7500 tax credit?
Either 40% of critical minerals used in batters manufactured or assembled in N. America OR
50% of the value of the battery components manufactured or assembled in N America??