That still might not be good enough for Manchin, hence his lawsuit threat.
“I’m fine with the processing in those areas. I’m just not fine with you all completing the project, and all we’re going to end up is assembling here,” he reiterated. “That is not the bill. That’s not how we wrote it, and it’s not how it should be implemented,” said Manchin.
The upcoming battery sourcing guidance is a big deal for anyone considering buying a plug-in vehicle because it will determine which makes and models will be eligible for the full $7,500 tax credit. The feds modified the IRA’s classification rules early last month to make more EVs eligible for the credit.
Automakers, including GM, Ford, and Hyundai, have already announced new battery production plants in the US, but they’re not expected to come online for a few years. These larger carmakers are still at a significant advantage over their smaller rivals, such as Lucid and Rivian, which purchase batteries from suppliers in Japan and South Korea, respectively.