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Battery material that may get you a tax credit for buying an electric vehicle

Graphite, the question of whether or not it would cost enough to gain an electric vehicle deduction.



Research Make (e.g. Cadillac)

Batteries for modern electric vehicles are largely made of graphite. It’s also challenging for Americans considering a tax credit for purchasing environmentally friendly vehicles.

As long as their batteries contain minerals harvested from or processed in a country with a free trade agreement with the U.S. and as long as some of the components are created or assembled in North America, EVs can qualify for a $7,500 tax credit under President Joe Biden’s climate and tax package. The Inflation Reduction Act’s provision goes into effect the following year, and the content requirements increase tighter after 2024.

Graphite, which is primarily made in China, could be problematic.

In a webcast on EV battery chemistries, UBS AG analyst Tim Bush stated, “The material that concerns me most is the anode.”

Despite the fact that automakers and battery producers are investing billions of dollars in brand-new factories in North America, “we have not seen that for the anode,” Bush said. Working around such content restrictions is “extremely tough,” according to Bush, because producing anodes is energy-intensive, it generates a lot of pollutants, and the future of the technology is unknown.

“It’s earmarked for potential obsolescence on the current technology path,” he stated.

Elon Musk, the CEO of Tesla, has previously discussed using lithium metal to replace graphite anodes in solid-state batteries and tapping silicon as a substitute. Until then, American consumers searching for that tax incentive will continue to face difficulties due to the presence of graphite in EV batteries.

Graphite, the battery component that can prevent you from receiving an EV tax credit first appeared in Autoblog on Saturday, August 20, 2022, at 7:00 a.m. To use feeds, please refer to our terms.