EV Battery Rules Delay Debated
Auto industry advocate praises move while mining group says it helps China.

The treasury department delayed enforcement of the battery-sourcing restrictions until 2027, giving automakers more time to reach compliance and opening more models to federal tax credits tied to the restrictions.
Pexels/Mikhail Nilov
When the U.S. government temporarily loosened regulation last week that curbs electric-vehicle battery materials sourced from China and other countries, a debate ensued about the wisdom of the move.
The Alliance for Automotive Innovation praised the delay, saying it will take more time to increase domestic production of the materials.
“The EV transition requires nothing short of a complete transformation of the U.S. industrial base. That’s a monumental task that won’t – and can’t – happen overnight,” said alliance President John Bozzella in a press release.
“This updated guidance from the Treasury Department is something we recommended. It makes good sense for investment, job creation and consumer EV adoption.”
Meanwhile, U.S. mining industry advocates criticized the enforcement delay, saying it gives China an edge.
“Congress created these tax incentives to secure our supply chains and generate American jobs while supporting EV adoption; they did not intend for loopholes to be created that essentially amount to a blank check from the American Taxpayer to China,” said National Mining Association President and CEO Rich Nolan.
The treasury department delayed enforcement of the battery-sourcing restrictions until 2027, giving automakers more time to reach compliance and opening more models to federal tax credits tied to the restrictions.
“The Treasury rules appear to recognize the realities of the global supply chain by providing some temporary flexibility in terms of where the critical minerals in EV batteries can be sourced,” Bozzella said. “That’s helpful as more automotive supply chains and battery production is localized to the U.S. and our allies.”
The alliance says 13 models for sale in the U.S. qualify for the full $7,500 tax credit.
Originally posted on Auto Dealer Today
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →