Know The Difference Minute

To qualify, the EV’s battery must be built in North America. 50 of the 72 electric, hydrogen or plug-in models sold in the US don’t meet the requirements.

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Made in the USA?
Welcome to the Know the Difference Minute for Tuesday, August 9th.
Tucked inside the Inflation Reduction Act is a $7500 electric vehicle tax credit. But there’s a hitch. To qualify, the EV’s battery must be built in North America with minerals mined or recycled on the continent. The Alliance of Automotive Innovation says 50 of the 72 electric, hydrogen or plug-in models sold in the US don’t meet the requirements.
This part of the Act is about encouraging domestic manufacturing and mining as much of the lithium and other minerals for EV batteries come from China. For full credit, 40% of the metals used in a vehicle’s battery must come from North America. By 2027, it’ll be 80%.
There might be another obstacle. Currently, the average EV price is $66,000. But with the Act, cars over $55,000 are not eligible. Same with trucks or SUV’s over $80,0000.
For Dave Spano, I’m Danny Clayton from Annex Wealth Management. That is your Know the Difference Minute.