Senator Joe Manchin, a centrist Democrat from West Virginia, is strongly criticizing the Biden administration’s new understanding of which cars can get electric vehicle tax credits. He says it allows batteries with Chinese materials too easily.
Manchin expressed in writing that the Administration has shown it is willing to disobey the law in order to saturate the market with electric vehicles as fast as possible. This was in response to the interpretation of the consumer electric vehicle tax credit in the Inflation Reduction Act.
The Biden administration's new rule, released on Friday, relaxes the restrictions in the Inflation Reduction Act that prohibit credit eligibility for vehicles with batteries containing materials from China, North Korea, Russia, or Iran.
The rule includes a two-year exemption for minerals that are hard to trace and appear in small amounts. It also expands the exemption to include graphite, which can make up a large part of an EV battery and is often sourced from China.
In his statement, Manchin argued that through the rule, the Treasury has created a long-term way for Iran, Russia, North Korea, and China to stay in our supply chains.
He also added, “It’s outrageous and illegal.”
Supporters of the policy assert that the rule's adaptability is crucial to provide electric vehicle manufacturers sufficient time to strengthen their supply chains.
Manchin, who played a crucial role in passing the Inflation Reduction Act law that expanded the tax credits, has frequently disagreed with the way the Biden administration has put the measure into effect, including its management of credits for EV chargers. for EV chargers and hydrogen energy.