Alliance for Automotive Innovation says U.S. automakers won’t qualify for the full credit. The lobby group represents General Motors, Toyota, and Ford Motor as well as a few other automakers. John Bozzella, head of the Alliance, is calling for a “more gradual phase-in” of the requirements.

The proposal would make 70% of 72 U.S. electric, plug-in hybrid, and fuel-cell EVs ineligible for the $7,500 tax credit. “A more gradual phase-in of the battery component, critical mineral and final mineral requirements will preserve the credit for Americans,” the bill says.

Senator Manchin says the U.S. needs to step away from its dependence on foreign supply chains. Talon Metals is a key partner of Tesla’s key nickel and battery mineral supplier of Tesla's. The nickel mine is in Tamarack, Minnesota.

Todd noted that other automotive lobby groups, such as the Zero Emissions Transportation Association (ZETA), had a more nuanced view of Manchin’s proposal. He also pointed out that Tesla is a lead member of ZETA which is in favor of the EV incentives.

Mining is the front end of the supply chain and it takes enormous knowhow, capital, and risk tolerance to discover, delineate, permit, construct and then safely operate a mine to supply battery minerals. Todd also emphasized that these other automakers need to work together with their suppliers. “We need everyone working together to meet these ambitious goals in the Manchin bill.”
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