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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EQORE, a distributed battery storage startup based in Somerville, Massachusetts, has raised $1.7 million in seed funding to help industrial buildings tackle rising electricity costs. The round was oversubscribed and includes backing from the Massachusetts Clean Energy Center (MassCEC), Henry Ford III of Ford Motor Company, and Jonathan Kraft of The Kraft Group.
The timing couldn’t be more relevant. Data centers are booming, and that demand is slamming an already stressed grid. Big, utility-scale batteries help at the grid level, but they can’t fix the bottlenecks happening on local distribution networks. That’s where onsite storage steps in — storing energy when demand is low and discharging it when demand spikes, which helps stabilize costs for both the grid and the businesses using it.
MassCEC’s head of investments, Susan Stewart, said, “What excites us the most about EQORE’s technology is the dual impact: grid support and customer savings.” She noted that commercial and industrial buildings are ideal hosts for battery storage, but haven’t gotten much attention until now. “EQORE is closing that gap.”
Investor Randolph Mann highlighted what makes the company stand out: “By uniting advanced controls with high‑resolution metering and true end‑to‑end service, EQORE finally makes commercial behind-the-meter storage effortless and financially compelling for businesses.”
EQORE comes out of MIT’s Sandbox program and delta v accelerator and is currently part of the Harvard Climate Entrepreneurs Circle incubator. CEO and cofounder Valeriia Tyshchenko, a third‑generation engineer from Ukraine and MIT graduate, said the new funding will help the company scale alongside its existing revenue.
With the seed round closed, EQORE plans to grow its team and ramp up battery deployments at energy-intensive manufacturing facilities. The company doesn’t just install batteries; it operates them. Its autonomous software shifts when a facility uses power based on market conditions and utility incentives, reshaping load in real-time without disrupting operations.
Read more: Battery boom: 5.6 GW of US energy storage added in Q2
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![Check out Hyundai's cool new off-road electric SUV concept [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/11/Hyundai-off-road-SUV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Hyundai took the sheets of its new off-road electric SUV, the Crater Concept, at the LA Auto Show. Here’s our first look at the compact off-roader.
Meet Hyundai’s new off-road SUV, the Crater Concept
We knew it was coming after Hyundai teased the off-road SUV earlier this week, hidden under a drape. Hyundai took the sheets off the Crater Concept at the LA Auto Show on Thursday, giving us our first real look at the rugged off-roader.
Hyundai refers to it as a compact off-road SUV that’s inspired by extreme events. The concept was brought to life at the Hyundai America Technical Center in Irvine, California.
The off-road SUV draws design elements from Hyundai’s Extra Rugged Terrain (XRT) models, such as the IONIQ 5 XRT, Santa Cruz XRT, and the new Pallisade XRT Pro.
Although it’s a concept, Hyundai said the Crater Concept is a testament to its commitment to designing future XRT vehicles that are more functional, more capable, and more emotional.
“CRATER began with a question: ‘What does freedom look like?’ This vehicle stands as our answer,” Hyundai’s global design boss, SangYup Lee said.
The off-road SUV features Hyundai’s new Art of Steel design theme, first showcased on the THREE concept at the Munich Motor Show in September.
Hyundai said the design team was guided by one clear goal: To create a rugged and capable vehicle that’s designed to go anywhere. The Crater Concept embodies that vision with added wide skid plates, 33″ off-road tires, limb risers, rocker panels, and a roof platform.
Hyundai designed the interior for “tech-savvy adventure seekers,” with a singular design centered around a high-brow crash pad that stretches across the dashboard.
The concept also swaps the traditional infotainment setup for a head-up display that spans the entire front window, which Hyundai said includes a live rearview camera.
Hyundai’s off-roader includes a new Off-Road Controller for front and rear locking differentials, as well as a terrain selector with modes including Sand, Snow, and Mud. Other off-road features include downhill brake control, trailer brake control, a compass, and an altimeter.
Although Hyundai said it was electric, it didn’t reveal any further details about the powertrain. The off-road SUV could be a battery-electric or fuel-cell-electric vehicle.
Like the new Nexo, Hyundai’s hydrogen fuel cell vehicle, the concept features “HTWO” lamps exclusive to its FCEVs.
Earlier this week, the design team at Hyundai Design North America also introduced its new design and ideation studio codenamed “The Sandbox.” The creative design studio is set to serve as a global hub for future XRT vehicles and gear.
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OpenAI is partnering with Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, to design and build artificial intelligence data center components in the U.S., the AI startup’s latest announcement tied to its massive infrastructure development plans.
While no financial terms were disclosed, OpenAI said in Thursday’s announcement that it will have early access to evaluate the systems Foxconn produces, and the option to purchase them. The companies said the goal is to accelerate the deployment of infrastructure while securing long-term U.S. capacity.
Under the agreement, OpenAI and Foxconn will co-develop multiple generations of AI servers in parallel, while manufacturing core components like power, networking, and cooling systems at Foxconn’s U.S. facilities. The company’s website says it has factories in Wisconsin, Ohio, Texas, Virginia and Indiana.
“This partnership is a step toward ensuring the core technologies of the AI era are built here,” OpenAI CEO Sam Altman said in a statement, calling AI infrastructure a “generational opportunity to reindustrialize America.”
OpenAI has been on a dealmaking blitz of late with many of the world’s largest technology companies, and has announced spending commitments of roughly $1.4 trillion, raising concerns about whether the startup will ever generate enough profit to justify those investments. Altman said earlier this month that the company will hit $20 billion in annualized revenue by the end of this year and hundreds of billions by 2030.
Prior deals include a $100 billion announced — but unfinalized — agreement with Nvidia for the chipmaker to invest in OpenAI in phases as the company builds out infrastructure. OpenAI also has cloud partnerships with Microsoft, Google and Amazon and hefty compute buildout commitments with Oracle.
Foxconn adds a manufacturing layer, further localizing OpenAI’s supply chain and potentially speeding the pace of deployment. The company is best known for assembling Apple’s iPhones but has expanded into AI and automotive manufacturing. It builds server racks tailored for AI workloads and is a key global supplier to Nvidia, the dominant player in high-end AI chips.
“Foxconn is uniquely positioned to support OpenAI’s mission with trusted, scalable infrastructure,” said Chairman Young Liu.
But the company has a checkered history in the U.S. In 2018, Foxconn broke ground on what was supposed to be a massive factory in Wisconsin for making flat-panel displays. That project was a failure, and is now the site of an AI data center being built by Microsoft.
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