Post by account_disabled on Feb 19, 2024 21:46:56 GMT -6
The US Congress is set to approve newly expanded tax credits for electric vehicle purchases. However, the rules are written in such a way that they effectively disqualify all electric vehicles currently on the market, according to The Verge . This is because most electric vehicles are powered by lithium-ion batteries, which are mainly manufactured in China. Currently, this nation has secured about 76% of the battery market, while the US only accounts for 8%. However, the recent alliance between the Korean chemical company LG Chem and Honda Motor Co.—maker of automobiles, engines for land, water and air vehicles, motorcycles, robots and components for the automotive industry—could resolve the acquisition of the credits and , thereby accelerating the transition to clean transportation proposed by the current US government's ambitious Inflation Reduction Act of 2022 project. Honda will build an EV battery factory LG Chem and Honda to build EV battery factory News that LG Chem and Honda will build an electric vehicle (EV) battery factory shores up the country's domestic production to comply with new tax credit rules.
The bill stipulates that for a vehicle to be eligible for the credit, batteries must have at least 40% materials sourced from North America or a U.S. trading partner. And, by 2029, Battery components must be 100% manufactured in North America. In addition to this, batteries that contain minerals that "were extracted, processed or recycled by a foreign entity of interest", that is, a State that sponsors Europe Cell Phone Number List terrorism or countries blocked by the Office of Foreign Assets Control of the Department of the Treasury, they would not be eligible for the credit. China is listed as a “foreign entity of concern” by the federal government. According to the Alliance for Automotive Innovation , the auto industry's leading lobbying group, there are currently 72 EV models available for purchase in the United States, including battery electric, plug-in hybrid and fuel cell vehicles. Of those models, 70% are not eligible for the tax credit; by 2029 none will be able to qualify for the full credit. Next line of hybrid and electric vehicles Honda and LG Chem will form a $4.4 billion joint venture in the US to produce batteries. The two companies aim to begin construction in early 2023, to begin mass production of lithium-ion battery cells in late 2025. Honda and its subsidiary Acura have plans to launch 30 hybrid, battery-electric and fuel cell by .
The factory, which aims to have an annual production capacity of approximately 40 gigawatt-hours (GWh), will likely be located in the state of Ohio, according to The Wall Street Journal. The state is also the site of a future $2.3 billion battery plant being built by LG Chem and General Motors. They will accelerate the acquisition of "clean vehicles" For automakers, the fact that LG Chem and Honda will build an EV battery factory is critical because it will allow them to qualify for the $7,500 per vehicle tax credit. However, foreign automakers have expressed concerns that the new tax credits could discriminate against companies without U.S. manufacturing facilities. The EV battery factory is part of a series of new electric vehicle facilities expected to come online in the coming years. Globally, battery production is projected to rise from 95.3 gigawatt hours (GWh) in 2020 to 410.5 GWh in 2024, according to GlobalData, a data analytics company. Honda will build an EV battery factor0000s part, the automaker Ford has said that its three new battery plants will allow a production capacity of 129 GWh per year. Likewise, General Motors is planning four new battery factories in the US (also with LG Chem) to reach a total annual capacity of 140 GWh. Additionally, Volkswagen aims to have six battery cell production plants operating in Europe by 2030 for a total of 240 GWh per year. With the increase in the production of EV batteries for new vehicles, a strong boost in climate change mitigation is expected. Something that is part of the responsible initiatives committed by the current US president, Joe Biden.