Centrist Democratic Sen. Joe Manchin (W.Va.) is criticizing the Biden administration’s new interpretation of which vehicles can qualify for electric vehicle tax credits — saying it gives too much leeway for batteries containing Chinese materials.
“The administration has made clear from day one of implementing the consumer electric vehicle tax credit in the Inflation Reduction Act that they will break the law in pursuit of their goal of flooding the market with electric vehicles as quickly as possible,” Manchin said. in a written statement.
The rule issued Friday by the Biden administration relaxes provisions of the Inflation Reduction Act that prohibit credit eligibility for vehicles whose batteries contain materials from China, North Korea, Russia or Iran.
The rule includes a two-year exclusion for minerals whose origins are difficult to trace and appear in small quantities. It also goes beyond a proposed rule by extending the exclusion to graphite, which can make up a significant portion of an EV battery and often comes from China.
In his statement, Manchin argued that through the rule, “Treasury has provided a long-term path” for Iran, Russia, North Korea and China “to remain in our supply chains.”
“It’s outrageous and illegal,” he added.
Supporters of the measure argue that the rule’s flexibility is important to give electric vehicle producers enough time to strengthen their supply chains.
Manchin, who was a swing vote on the Inflation Reduction Act that expanded the tax credits in the first place, has frequently questioned the way the Biden administration implemented the measure, including the treatment of credits for electric vehicle chargers and utility power. hydrogen.
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