U.S. Delays Strict EV Tax Credit Sourcing Rules to 2027
The U.S. government extends the deadline for stringent sourcing requirements for electric vehicle tax credits, allowing more flexibility for automakers.
- The U.S. Treasury Department has pushed back the enforcement of strict sourcing rules for EV tax credits from 2025 to 2027, providing relief to automakers.
- New regulations exempt certain 'impracticable-to-trace' minerals like graphite from stringent sourcing requirements until 2027.
- Despite the easing of some rules, tougher requirements on other battery minerals like lithium and cobalt will still take effect in January 2025.
- The changes aim to give manufacturers more time to adjust their supply chains and reduce dependency on foreign entities of concern, particularly China.
- The revised rules are expected to increase the number of EVs eligible for tax credits in the coming years, fostering greater EV adoption.
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