Inflation Reduction Act 2022 remains a tough call for carmakers to avail EV tax credits

Circular Economy

While the IRA 2022 is already accelerating new supply chain investments in North America, it remains to be seen if the industry pulls up to meet the strict requirements for battery raw materials and components through the decade

It has been almost a month since the Democrats in the US Senate passed the Inflation Reduction Act of 2022 (IRA 2022), which became legislation on 16 August 2022 after the US President Joe Biden signed the act. While carmakers and their suppliers across the electric vehicle (EV) battery supply chain have been scrambling to decode the new mandates, auto industry lobbies from Europe, South Korea, and Japan have already expressed deep concerns about the ability of global carmakers to meet the required norms to qualify for the revised EV tax credit guidelines.

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