Fewer EVs qualify through US Treasury’s guidelines on battery sourcing

While there were 41 eligible EV models before April 18, the implementation of revised guidelines under the US IRA has reduced the number of qualifying vehicles to 32, including 26 BEVs and 6 PHEVs

On March 31, US Department of the Treasury and the Internal Revenue Service (IRS) released proposed guidance on the new clean vehicle provisions of the Inflation Reduction Act, which was signed into law in August last year. Aimed at incentivizing the domestic production of electric vehicles (EV) and batteries and reducing dependency on foreign supply chains, the proposed guidance, according to the US government, intends to provide clarity and certainty to manufacturers on the IRA requirements.