In an attempt to continue supporting EV production, the White House recently announced that it will award $2.8 billion in grants to boost U.S. domestic mineral production and manufacturing of electric vehicle batteries. This grant will be distributed among 20 manufacturing and processing companies across 12 different states.
President Biden also announced the American Battery Materials Initiative, which is intended to secure a reliable and consistent supply of the materials needed to produce electric vehicles.
These endeavors follow President Biden’s vision of EVs representing half of all new vehicles sold by 2030. If this goal is to come to fruition, the demand for the critical EV minerals, such as lithium and graphite, will experience a substantial increase. These announcements are being presented as the White House’s efforts to “increase American energy independence and shore up reliance on foreign powers for raw materials.”
“China currently controls much of the critical mineral supply chain and the lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle development and adoption, leaving the U.S. dependent on unreliable foreign supply chains,” the White House stated in a press release.
These initiatives come on the heels of another recent effort by the U.S. government to incentivize EV production. Following the Inflation Reduction Act, GM EVs, as well as other EVs manufactured in North America, will once again qualify for the full $7,500 federal electric vehicle tax credit. Back in 2019, GM reached the 200,000 vehicle cap to receive the full tax credit. This cap has been waived and GM EVs will be eligible starting January 1st 2023. However, there’s a catch.
The stipulation in the bill that specifies that qualified EVs must be manufactured in North America also apples to where battery components and minerals are sourced from. This effectively splits the credit into two $3,750 parts. In addition, the Alliance for Automotive Innovation, a lobbying group that represents major automakers including GM, VW and Ford, says that there are currently no EVs on market today that would qualify. This would seem to explain the White House’s new initiatives and the focus on domestic manufacturing.
Regardless, the following GM EVs would be eligible for the $7,500 tax credit if qualified:
- Cadillac Lyriq
- Chevy Bolt EV
- Chevy Bolt EUV
- Chevy Silverado EV
- Chevy Blazer EV
- Chevy Equinox EV
- GMC Sierra EV
Note that three of these vehicles include additional caveats – the Cadillac Lyriq will need to be classified as an SUV to qualify, In addition, the Lyriq, Chevy Silverado EV and GMC Sierra EV will only be eligible in their lower trim levels due to the price cap.