General Motors CEO Mary Barra spoke with analysts Tuesday, saying GM’s EV models will be able to qualify for the full tax credit in two to three years.
What are the qualifications for the EV tax credit?
The Inflation Reduction Act (IRA), passed in August, provides up to $7,500 for new electric vehicle purchases. However, the EV must adhere to specific battery mineral sourcing and components assembly requirements to qualify.
The bill’s provisions are designed to bring manufacturing to the US, where a significant portion of the minerals and EV battery components must be extracted, processed, and manufactured domestically.
To obtain the full EV tax credit, it will need to pass two conditions:
Critical minerals ($3,750) – Starting next year, at least 40% of the value of critical minerals used in the EV’s battery will need to be manufactured or assembled in the US, with its free trade partners, or recycled here in North America. Each year after that, the requirement goes up by 10%. For example, in 2024, 50% will be required, 60% will be needed in 2025, 70% in 2026, and so on.
Battery components ($3,750) – Also, beginning next year, at least half of the value of the EVs battery components will need to be manufactured or assembled in North America. Likewise, the requirement will increase by 10% each year.
Automakers like General Motors are making swift progress to ensure their electric vehicles qualify for the tax credit as new climate initiatives expect to accelerate demand for EVs further.
GM released Q3 earnings Tuesday, reporting a record $41.9 billion in revenue as the company continues building out its EV portfolio, including battery components. With GM planning to become an all-electric brand, qualifying for the tax credit will likely be critical to the automaker’s success in its home market.
Chevy Blazer EV / Source: GM
Do GM’s electric vehicles qualify for the EV tax credit?
On GM’s earnings call Tuesday, automotive and mobility analyst Colin Langan asked the automaker’s leader if its electric vehicles will qualify for the full tax credit. In response, Barra stated:
Yes. We think, out of the gate, we’re going to be eligible for the $3,750, and we’ll ramp to have full qualification in the next two to three years, getting up to the $7,500.
Barra continues, saying, “We’re well positioned there,” adding its commercial fleet, Brightdrop, will also be important in terms of federal incentives.
Furthermore, GM believes that with its domestic battery cell and module production in the US, there’s a “significant opportunity” to leverage the EV tax credit of up to $45 per kilowatt hour.
GM is building four battery cell plants through its Ultium partnership with LG Energy. The first one, in Ohio, began production earlier this year as GM plans to roll one out each year. The automaker plans to sell 1 million EVs in North America and China by 2025, and the tax credits will play a vital role in getting there.
Electrek’s Take
The strict battery requirements will knock many popular EV models from qualifying for the tax credit next year. At the same time, GM and other automakers are scrambling to meet the requirements.
With GM’s strategy to provide an “EV for everyone,” ensuring its buyers can take advantage of the tax credit is a priority. The automaker targets a lower price point for its models with EV models like the $30,000 Chevy Equinox EV.
Securing the EV tax credit for its consumers will be huge for GM, which looks to play a significant role in ramping production of electric vehicles in the US. Electric vehicles are gaining momentum in the US, crossing a 6% market share this past quarter, yet the demand is even higher.
Most automakers are reporting substantial backorders for their EV models due to limited battery mineral capacity domestically. Although federal incentives are rolling out to help ease the transition, more will likely need to be done.
As Electrekreported yesterday, companies like Nth Cycle offer an innovative solution to address this through battery recycling and metal processing.
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The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.
With the Trump Administration fully in power and Federal electric vehicle incentives apparently on the chopping block, many fleet buyers are second-guessing the push to electrify their fleets. To help ease their minds, Harbinger is launching the IRA Risk-Free Guarantee, promising to cover the cost of anticipated IRA credits if the rebate goes away.
In the case of a Harbinger S524 Class 5 chassis with a 140 kWh battery capacity with an MSRP of $103,200, the company will offer an IRA Risk-Free Guarantee credit of $12,900 at the time of purchase, bringing initial cost down to $90,300. This matches the typical selling price of an equivalent Freightliner MT-45 diesel medium-duty chassis.
“We created (the IRA Risk-Free Guarantee) program to eliminate the financial uncertainty for customers who are interested in EV adoption, but are concerned about the future of the IRA tax credit,” said John Harris, Co-founder and CEO of Harbinger. “For electric vehicles to go mainstream, they must be cost-competitive with diesel vehicles. While the IRA tax credit helps bridge that gap, we remain committed to price parity with diesel, even if the credit disappears. Our vertically integrated approach enables us to keep costs low, shields us from tariff volatility, and ensures long-term price stability for our customers.”
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Harbinger recently revealed a book of business consisting of 4,690 binding orders. Those orders are valued at approximately $500 million, and fueled a $100 million Series B raise.
Electrek’s Take
Harbinger truck charging; via Harbinger.
One of the most frequent criticisms of electric vehicle incentives is that they encourage manufacturers and dealers to artificially inflate the price of their vehicles. In their heads, I imagine the scenario goes something like this:
you looked at a used Nissan LEAF on a dealer’s lot priced at $14,995
a new bill passes and the state issues a $2500 used EV rebate
you decide to go back to the dealer and buy the car
once you arrive, you find that the price is now $16,995
While it’s commendable that Harbinger is taking action and sacrificing some of its profits to keep the business growing and the overall cause of fleet electrification moving forward, one has to wonder how they can “suddenly” afford to offer these massive discounts in lieu of government incentives – and how many other EV brands could probably afford to do the same.
Whoever is left at Nikola after the fledgling truck-maker filed for Chapter 11 bankruptcy protection last month is probably having a worse week than you – the company issued a recall with the NHTSA for 95 of its hydrogen fuel cell-powered semi trucks.
That complaint seems to have led to the posthumous recall of 95 (out of about 200) Nikola-built electric semi trucks.
The latest HFCEV recall is on top of the 2023 battery recall that impacted nearly all of Nikola’s deployed BEV fleet. Clean Trucking is citing a January 31, 2025 report from the NHTSA revealing that, as of the end of 2024, Nikola had yet to complete repairs for 98 of its affected BEVs. The ultimate fate of those vehicles remains unclear.
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Electrek’s Take
Image via Coyote Container.
I’ve received a few messages complaining that I “haven’t covered” the Nikola bankruptcy – which is bananas, since I reported that it was coming five weeks before it happened and there was no “new” information presented in the interim (he said, defensively).
Still, it’s worth looking back on Nikola’s headlong dive into the empty swimming pool of hydrogen, and remind ourselves that even its most enthusiastic early adopters were suffering.
“The truck costs five to ten times that of a standard Class 8 drayage [truck],” explained William Hall, Managing Member and Founder of Coyote Container. “On top of that, you pay five to ten times the Federal Excise Tax (FET) and local sales tax, [which comes to] roughly 22%. If you add the 10% reserve not covered by any voucher program, you are at 32%. Thirty-two percent of $500,000 is $160,000 for the trucker to somehow pay [out of pocket].”
After several failures that left his Nikola trucks stranded on the side of the road, the first such incident happening with just 900 miles on the truck’s odometer, a NHTSA complaint was filed. It’s not clear if it was Hall’s complaint, but the complaint seems to address his concerns, below.