The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules.
The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden’s effort to make 50 per cent of U.S. new vehicle sales by 2030 EVs or PHEVs. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers’ calculations.
The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70 per cent of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.