Following its delayed but long-anticipated battery guidance pertaining to federal EV tax credits, the US Treasury Department’s requirements are about to kick in, and it’s not great news for all prospective EV buyers. Beginning tomorrow, EVs from major automakers like BMW and Nissan will no longer qualify for any tax credits at the federal level, while Tesla’s base Model 3 is cut in half.
Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates.
According to the US government’s Fuel Economy website, the American automaker’s R1T pickup and R1S purchased after April 18, 2023, now qualify for up to $3,750 in potential tax credits.
Update April 19: As alluded to earlier this week, Volkswagen Group has submitted the necessary paperwork with the US Government and the following 2023 ID.4 models now qualify for up to $7,500 in credits:
ID.4 and ID.4 S
ID.4 Pro, ID.4 Pro S, ID.4 Pro S Plus
AWD ID.4 Pro, AWD ID.4 Pro S, AWD ID.4 Pro S Plus
Following a nearly four-month delay, the US Treasury Department shared its guidance earlier this month, outlining what parameters automakers must comply with in terms of battery component assembly and respective materials in order for their EVs to qualify for federal tax credits.
Beginning April 18, EV manufacturers must ensure that battery-critical minerals used in vehicles assembled in North America are also “extracted or processed in the US or any country with which the US has a free trade agreement” or recycled in North America. Like the EV themselves, battery components must also be “manufactured or assembled in North America.”
Each of the two newly enforced qualifying factors account for $3,750 in EV tax credits, combining for the total $7,500. Even before the battery guidance was revealed, several global automakers began scrambling to erect or repurpose US manufacturing facilities to enable local EV production.
Some of those automakers (like Rivian, for instance) are already American-made, while others, like Volkswagen, have had local plants for years. In that sense, we thought it was safe to assume those automaker’s EVs would continue to qualify for federal tax credits.
However, according to the US government, a slew of previously qualifying EVs are about to be cut (at least for now) because of the battery guidance going into effect. Here’s the latest.
Battery guidance puts huge hit on EV tax credits in US
We’ve been aware of the battery guidance from the US Treasury for a few weeks now and have known those requirements will take effect on April 18. However, automakers aren’t generally super open about how and where they source all their materials, so it remained unclear which EVs may or may not still qualify for the tax credit.
Some automakers like GM, for example, have come out publicly and shared that all their EVs will still qualify for the full $7,500 EV tax credit. Others have remained quiet, leaving us guessing. Today, the government has made things a lot clearer… and more disheartening for those consumers looking to purchase a new Rivian or Nissan LEAF with hopes of getting a $7,500 kickback.
This morning, the US Treasury stated the following models will lose their EV tax credit status beginning tomorrow. Here’s the latest wave of EVs being cut:
Audi (VW Group)
BMW
Genesis (Hyundai Motor Group)
Volvo
Additionally, the US government states that the Standard Range RWD Tesla Model 3 will now only qualify for up to $3,750 in federal EV tax credits. Other trims of the Model 3 and the Tesla Model Y will still qualify for up to the full $7,500 EV tax credit.
Now that they have been cut, that isn’t to say those EVs can’t once again qualify for federal EV tax credits. Volkswagen Group has already come out and said it is “fairly optimistic” that the ID.4 will qualify. The automaker is merely awaiting the proper documentation from a supplier.
Additional automakers like Stellantis expect their electric models to qualify for at least half of the tax credit, and the Treasury has confirmed as much.
Hyundai Motor Group expressed commitment to long term EV plans as it is currently constructing a new US production facility to eventually produce vehicles that will once again qualify for EV tax credits.
This story is ongoing and the list of qualifying EVs should continue to evolve in the coming weeks as the battery guidance kicks in and automakers submit the necessary paperwork (or not) to try and requalify. As always, we will continue to keep this list up to date for you.
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Amprius Technologies just unveiled a new SiCore cell built on its Silicon Anode Platform that boosts battery performance for EVs, electric aviation, and drones.
In late 2024, battery manufacturer Amprius delivered pre-production 10Ah samples to six customers for testing, and full commercialization is set for early 2025. If real-world tests deliver as promised, this battery could enable its customers to achieve superior range, speed, and reliability.
Amprius’s new SiCore cell delivers an energy density of 370 Wh/kg and a power output of over 3000 W/kg. That means it packs a ton of energy while also delivering power in bursts – ideal for scenarios where endurance and speed are equally critical.
The Fremont, California-based company says what makes its new SiCore cell unique is its flexibility. It handles high discharge rates of up to 10C without active cooling and 15C with cooling, making it a solid choice for extreme conditions. Think drones flying longer missions or electric aircraft nailing energy-draining takeoffs and landings.
According to Amprius customer Teledyne FLIR, which specializes in unmanned aerial systems, this battery could be a game-changer for its drones. Tung Ng, vice president of unmanned Systems North America at Teledyne FLIR, said, “We are eager to evaluate how this breakthrough technology can meet the rigorous needs of our defense, security, and industrial customers, enabling longer runtimes and increasing operational flexibility.”
EVs, advanced air mobility, and eVTOL aircraft also stand to benefit from the SiCore cell’s balance of high energy and high power. Dr. Ionel Stefan, Amprius’ CTO, described it as a breakthrough in the tricky trade-off between power and energy density, calling it “a new power possibility for high-demand applications.”
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If you are waiting on an EV from Chrysler, you’ll have to wait a little longer. The company is adjusting plans. Chrysler’s long-awaited electric crossover is officially on hold after an email leaked notifying suppliers of the changes. Here’s what to expect now.
Why is Chrysler’s electric crossover delayed again?
Despite announcing plans to have an all-electric lineup by 2028, Chrysler has yet to release a single EV. Now, it looks like it will be here even later than expected.
After an internal Stellantis email leaked last week, first reported by MoparInsiders, Chrysler confirmed it’s pausing its electric crossover. The email sent to suppliers said the program “has been put on hold until further notice.”
Chrysler’s electric crossover was initially scheduled to debut later this year, but the launch date has been pushed back.
At the 2023 Reuters Events Automotive USA Conference, Chrysler CEO Chris Feuell said the brand’s first EV will be a two-row crossover in 2025.
The electric crossover was expected to be an evolution of the Airflow concept from 2022. However, Stellantis’ head designer, Ralph Gilles, who oversees Chrysler, Dodge, Jeep, Ram, and Maserati, said the EV was “evolving in a new direction” in November 2023.
Inspired by the Airflow, Chrysler’s electric crossover was supposed to be powered by the STLA Large platform, which also underpins the new Jeep Wagoneer S and Dodge Charger Daytona EVs.
The Airflow was based on Chrysler’s RU platform, used for the Pacifica Hybrid, but the company said the EV platform would offer more capabilities.
Chrysler revealed its new vision with the radical Haylcyon concept show last year. Earlier this year, a brand spokesperson confirmed to Car and Driver that “Chrysler brand CEO Chris Feuell has said that we are working to develop a production version of the Chrysler Halcyon concept at some point in the future.” However, no launch date was confirmed.
Electrek’s Take
Chrysler’s electric crossover being put on hold is the latest in a series of setbacks for Stellantis EV ambitions in the US.
Stellantis sales fell another 15% in the US last year, marking its fourth straight YOY sales decline in the US. Chrysler (-7%), Jeep (-9%), Ram (-19%), Dodge (-29%), and Alfa Romeo (-19%) all sold fewer vehicles last year than in 2023.
The first Jeep and Dodge EVs, which were expected to hit US dealerships by the end of 2024, are finally arriving after encountering software issues.
Is Stellantis in trouble in the US? Over the summer, former CEO Carlos Tavares told reporters that unprofitable US brands could be shut down. “If they don’t make money, we’ll shut them down,” he said.
Despite this, Feuell told CNBC a year ago, “Chrysler brand is here to stay. It is being well invested in. The brand is not on the table for elimination, and it has a very bright future.”
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Toyota has been revealed as the largest auto industry funder of climate deniers in US Congress, according to a report released today by Public Citizen.
Toyota is the largest automaker in the world, having occasionally competed for that title with Volkswagen. It sells more gas-powered, polluting vehicles than any other company on Earth, and thus, it has a vested interest in continuing to sell those polluting vehicles.
But the problem is that gas-powered, polluting vehicles are not good for the health of humans or other living beings on this planet.
But that truth is inconvenient to Toyota, whose global revenue from selling polluting vehicles exceeds $300 billion/year. That means that, as one of the richest companies in the world and thus one of the most well-positioned to fund a transition to cleaner vehicles, it has a choice: it can either better itself, or it can do nothing to improve and instead pay people to lie about the problems that its vehicles are causing.
As you might expect, it has chosen the latter.
Toyota ranked as a top pollution advocate, once again
Toyota has repeatedly ranked as one of the strongest funders of pro-pollution, anti-EV, and climate denying propaganda in the world, and a new report out today reveals its growing interest in seeding anti-science attitudes in US Congress, through political donations to climate deniers.
Public Citizen’s report, “Driving Denial: How Toyota’s Unholy Alliance with Climate Deniers Threatens Climate Progress,” analyzes political donations from US auto industry PACs over the last three election cycles, and shows that not only is Toyota the largest funder of climate denial, but that Toyota’s funding of climate denial is increasing, while others are decreasing.
(Edit: Notably, the report only covered company-linked automaker PACs, specifically Toyota, Ford and GM, and donations to Congressional candiates. Tesla CEO Elon Musk did set up his own PAC, and his donations to anti-EV and climate denying candidates vastly outpaced all of the aforementioned PACs combined).
Public Citizen analyzed public records of political donations and past statements by US Congressmembers. It expanded its definition of “climate denier” from previous reports, this time including members who “used other rhetorical tactics like climate doomism (saying there is nothing that can be done), portraying climate activism as alarmism, and who downplayed the need to act to address climate change.”
It found 169 candidates – unsurprisingly, all republican – who had worked to deny scientific truths about climate change over the course of the last three election cycles. Out of those 169 candidates, Toyota donated some amount of money to 143 of them, totaling $810k.
In just the most recent cycle, it found that Toyota gave $271,000 combined to 62 candidates, nine times as much as Ford and more than twice as much as GM gave. Both Ford and GM’s climate denial donations reduced over the last three cycles, while Toyota’s dipped in 2022 and rose in 2024.
These are relatively small dollar numbers compared to Toyota’s >$300 billion in global annual revenue, and it’s money that has gotten results.
How this lobbying affects your lungs and pocketbook
In March of 2024, President Biden’s EPA finalized a new exhaust rule that will save thousands of lives and save Americans over $100 billion in fuel and health costs per year, and reduce climate pollution by 7 billion tons – but lobbying from the auto industry, including Toyota, got those rules softened before they were implemented.
The rest of the auto industry also asked for that softening of the rules, but there is now an opportunity for them to go further. Unfortunately for America, the next occupant of the White House is convicted felon Donald Trump, who finally received more votes than his opponent on his third attempt (despite committing treason in 2021, for which there is a clear legal remedy).
Toyota’s “green image” is long overdue for a change
Toyota has long rested on the laurels of its previous success with hybrid vehicles, hoping that customers would be fooled into thinking that it is an environmentally responsible company because it sold some vehicles that make slightly less pollution than others for a while.
But conventional hybrid vehicles like the Prius (non-plug-in version) are still gas-powered, and still get 100% of their energy from gasoline. The vehicle’s hybrid drive only works to recover kinetic energy that’s already in the system and redeploy it, increasing efficiency, but still relying entirely on a resource that absolutely, without question, must stay in the ground.
And while Toyota has sold a significant amount of hybrids, the brand still ranks below average in efficiency, according to the EPA automotive trends report. It ranked below all other Asian brands, and below BMW, a brand famous for its large-engine and high-performing sportscars (though ahead of the US Big Three, which sell a lot of disgustingly huge vehicles and need to do better).
This is incongruous with Toyota’s perception among the public, which still consider the company as a green leader despite its long-time advocacy, as covered above, against EVs, against clean air regulations, and in favor of climate denial.
But is all of this effort to be hostile to life on Earth helping Toyota? Probably not – and it might even know it.
Toyota’s EV intransigence is harming it – and all of Japan
While Toyota’s advocacy could be interpreted as an attempt to protect its profits, this is a short-sighted view.
All industries change, and companies that do not change along with their industry are doomed to failure.
Toyota, itself, was the harbinger of this change in the 1970s, when the auto industry went through a big shakeup due to disruption in the oil and steel industries. Consumers needed smaller and more efficient vehicles that were not being provided by US automakers, and Toyota and other Japanese automakers – which also had superior manufacturing techniques and access to better and cheaper steel – swooped in to provide them.
However, now Toyota and Japan are on the opposite side of this lesson. Worldwide, consumers are demanding electric vehicles at increasing rates, and Toyota not only refuses to provide them, but tries to channel customers to its polluting vehicles instead.
The situation got so bad that the company’s longtime CEO, Akio Toyoda, stepped down in 2023 due to his failure on EVs, but the new CEO Koji Sato didn’t change much.
So the roles are reversed now – China is the new Japan, and Japan, led by Toyota (the largest company in the country, with high political and cultural influence) is responding in just the way that will ensure the same outcome as the last time this happened.
As EV sales grow globally, any company that does not keep pace will find its position diminished. Toyota has shown no interest in keeping pace, and instead is trying to lobby to stop a transition that will happen whether it likes it or not.
And it won’t just harm Toyota, but the entire country of Japan, for which automotive products make up around a fifth of its exports. Japan is reliant on the auto industry, and its intransigence could lead to a huge drop in GDP if it doesn’t shape up.
But instead of looking at all this blatant evidence that its intransigence will harm it, Toyota is doubling down on climate denial instead of trying to catch up with an industry that has clearly left it in the dust.
While Toyota’s short-term lobbying victories may feel good in the moment, they will help neither the company, the health of the humans who work for it who have to deal with the increased pollution its leadership lobbies for, nor the health of the planet it exists on which will be harmed by the science denial it lobbies for.
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