President-elect Donald Trump will put his objectives about developing critical mineral supply in jeopardy if he carries through on his plan to ditch the up to $7,500 federal tax credit offered on the purchase of new and used electric vehicles, according to the Zero Emission Transportation Association (ZETA).
ZETA, headed by Albert Gore, son of the former presidential candidate, says Trump wants to support and develop lithium and graphite production in the U.S., and that the tax credit would help achieve this, The Detroit News reports.
The Biden-era tax credit, Albert Gore says, is “the most powerful way to send a demand signal” to the critical mineral industries Trump wants to bolster. He points out that the tax credit rule exempts graphite from consideration when determining EV credit eligibility until 2027. This gives automakers much-needed breathing room as they develop their own graphite sourcing, while still being allowed to get the material from China, the current origin for 90 percent of graphite.
Gore argued that since the critical minerals arena is “a market China has a 15-year head start on” that “it’s in the U.S.’s economic interest, strategic interests to move very quickly to ensure we can compete” – best achieved by keeping the credit to encourage EV investment.
He added that the provisions of the Inflation Reduction Act regarding EV materials and credits are “levers for private sector investment.” Because of them, “these hard-to-finance projects – like for cobalt and graphite” can “go to capital markets and raise money.”
GM and other automakers have also been pressuring America’s 45th and soon-to-be 47th president to keep the EV tax credit, at least partially. Trump has recently suggested he might shift funding from EV charging stations to military supply chains and defense production. The Electric Military Concept Vehicle (eMCV) based on the GMC Hummer EV might also get scrapped.
GM has said it might reduce its focus on EVs and PHEVs if Trump carries through with his promise to ease fuel economy standards, but will continue to pursue development of a profitable EV lineup alongside its ICE product range, which “is mature and doing really, really well” per GM CFO Paul Jacobson.
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Anyone have popcorn?
Government hurting its own goals with anti-virtue virtue signaling? Imagine that.
Trump needs to lose Musk because what we all saw yesterday was disgusting. BUT, that being said, here goes the entire economy down the toidy. Get ready all, it’s a coming.
This country has been down the toliet since this current fool came into office.
Good luck America. Once again you’ve hired a “man” that embodies every despicable human quality one could possibly imagine… and then some.