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Inflation Reduction Act fueling uncertainty among automakers

2021 Chevy Bolt Electric
Wikimedia Commons
2021 Chevy Bolt Electric

The Inflation Reduction Act passed by Congress fights climate change, in part, by promoting the use of electric vehicles. The new legislation is fueling uncertainty among automakers

The Act aims to make electric vehicles more affordable by extending a 75-hundred dollar tax credit for buying a new one, and a four-thousand dollar credit for a used vehicle.

It also requires domestic automakers to source a major portion of key components and assemble electric batteries in the U-S or a country with a free trade agreement within a few years.

The president of the Alliance for Automotive Innovation, John Bozzella, says there must be enough mines granted permits to excavate the raw materials and enough countries willing to do it.

“The challenge here is a lot beyond the auto industry has to happen, and has to happen quickly, in order for these deadlines to be met.”

He says automakers want electric vehicles to make up at least 40 percent of their total sales within a decade.

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