Inflation Reduction Act EV Impact

September 26, 2022

Sales of Electric Vehicles were already hot in 2022. The Inflation Reduction Act should serve to put EVs in many more garages. 2022 sales nearly doubled year-over-year despite supply chain challenges and record prices for metals. The Inflation Reduction Act creates a tax credit equivalent to 10% of the cost of production for certain critical minerals used to manufacture EVs, including aluminum, lithium and graphite. Companies making lithium-ion battery cells for EVs will enjoy a tax credit of $35 per kWh for each cell produced. Battery makers will get a tax credit of $10 per kWh on battery modules.