Mary Barra claims GM’s electric vehicles will qualify for the full tax credit in ‘2 to 3 years’
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.
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 Electrek reported yesterday, companies like Nth Cycle offer an innovative solution to address this through battery recycling and metal processing.
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Environment
Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:30 a.m. ET (or the video after 10:30 a.m. ET):
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
- West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
- Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
- RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
- Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.
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