House republicans vote to send US EV jobs to China, give trillions to US elites
House republicans passed their tax proposal, which kills a slew of tax credits to help working families become more energy efficient, improve US air quality, and boost US manufacturing. The republican bill instead channels that money to wealthy elites, increasing the deficit by trillions of dollars along the way.
Republicans in Congress released their 389-page proposal last Tuesday and, as expected, it included several provisions to eliminate popular clean energy credits which were driving a boost in American manufacturing.
The credits were largely established under President Biden as part of the Inflation Reduction Act, which raised hundreds of billions of dollars through tax enforcement on wealthy individuals and corporations and channeled that into energy efficiency credits for American families.
We’ve covered how families could save thousands of dollars on upgrades to lower their energy costs through these credits.
But these credits aren’t just money-saving for Americans, they also work to boost American manufacturing, due to various provisions in the bill, particularly around the $7,500 EV tax credit which was limited to cars that undergo final assembly in North America.
While loopholes exist, nevertheless the bill resulted in a massive expansion of American manufacturing, driving hundreds of billions of dollars of investment and creating hundreds of thousands of jobs.
But now, republicans in Congress have voted to roll much of that progress back. The final vote tally was 215-214, with one additional representative voting “present” (which means 215 out of 430, or 50%, of representatives voted Yea, which is not actually a majority). All Democrats voted against the job-killing measure, while only two republicans, Davidson (R-OH) and Massie (R-KY), voted to support American jobs, and Harris (R-MD) voted “present.”
Here’s a list of the bill’s various effects related to clean air and energy (via the BlueGreen Alliance):
- Attaching restrictions to clean energy and manufacturing tax credits that would make them unusable in practical terms while also “sunsetting” those tax credits early, a move that research suggests will increase costs for American families;
- Repealing the Clean Vehicle Tax Credits;
- Repealing the Clean Hydrogen Tax Credit;
- Clawing back unspent funds for air quality monitoring in schools, clean manufacturing, state and community energy programs, and electric grid upgrades;
- Defunding and delaying the Methane Emissions Reduction Program (MERP), which reduces pollution and protects the health of workers and communities;
- Clawing back all unspent Inflation Reduction Act funds, including many provisions that would have lowered energy bills, created jobs, and reduced pollution; and
- Attacks on many additional Inflation Reduction Act programs and initiatives.
The finalized bill went through some changes, though those changes primarily made the bill worse for American jobs and clean air. For example, it seems that the bill has snuck in a repeal of EPA pollution rules that will save thousands of American lives and $100 billion per year (see sec 42201), in yet another Congressional overreach.
It also seems to have incorporated republicans’ ridiculous proposal to add a punitive fee on EVs, in the amount of $250/year. That fee was originally proposed as a way to eliminate the federal gas tax, and was accompanied by a $20/year fee on gas cars, but republicans dropped the latter fee and boosted the EV fee, with the final effect that it would increase the deficit by billions.
You can perhaps see a pattern in these effects: they’re primarily targeted towards increasing costs for regular American families who were taking advantage of these tax credits, and towards programs that would keep you and your children healthier.
Previous analyses show how repealing these tax credits would lead to increased electricity prices for all Americans.
It should not be any surprise to anyone that has been paying attention that republicans want to poison you and raise your costs, but some people apparently still need more examples, so here we are.
In particular, the bill eliminates the US EV tax credit which had driven so much of that investment due to its domestic manufacturing provision (though there are some small carveouts). Not only does that inflate the cost of the best vehicles available today for Americans, it also takes away one of the incentives that was driving investment in US manufacturing.
And the bill specifically harms Tesla more than it harms Tesla’s competitors, despite its CEO, Elon Musk, being the richest republican donor on the planet.
We’ve warned before that a bill like this would just send more EV jobs to China, a country where nobody is “debating” over which direction the auto industry is going. Chinese automakers all know the industry is going electric, and they’re putting all of their effort into it.
This is quite a contrast with Western automakers which keep hemming and hawing, begging their governments to let them go bankrupt with anti-EV policy decisions that will only slow down their transition towards modernizing to the global EV status quo.
We’ve already seen the effects of other poor policy decisions on manufacturing, with several companies pausing or canceling plans to build manufacturing facilities in North America as a result of tariff chaos at the hands of an ignoramus. Republican districts have been hit hardest, as they were where the majority of this investment had been going.
And we’ve seen it made clear that the republicans in government responsible for protecting clean air would rather poison you and raise your fuel costs, as long as it helps the oil industry which bribed them into their position.
But then, the cherry on top of today’s tax bill is that its cuts of these credits don’t even have a greater budgetary purpose. Not only was the Inflation Reduction Act revenue-positive – which is to say, it raised more money than it spent, thus reducing the deficit – today’s republican tax bill is revenue-negative, which is to say, it will increase the deficit.
The republican proposal raises the debt ceiling by $4 trillion, and it makes use of virtually all of that headroom, as the Joint Committee on Taxation has estimated that it will add $3.7 trillion to US debt. This is largely due to the bill’s significant giveaways to wealthy elites, with the majority of tax cuts targeted at the wealthiest Americans.
So the government isn’t even getting any savings out of this bill, merely channeling more money from working families to the wealthy elites that the republican party has always tried to benefit (including in other ways than the clean energy credits, like by cutting health care for the poor).
The bill will now go on to the Senate, where republicans already showed this morning they will do anything, even if it’s illegal, to harm Americans. If you have a republican Senator, it might be worth letting them know that you support American jobs and clean air, and keeping costs low for Americans, and therefore oppose this bill.
The argument could be made stronger in states that have received significant investment as a result of the credits the bill repeals. EV projects are particularly popular in states like Georgia, North Carolina, and others along the burgeoning US “battery belt”. An interactive tool showing the jobs jeopardized by this republican plan, including the ability to sort by state or Congressional district, is available here.
Otherwise, you can find your Senator on Congress’ website, and then search for the contact form on your Senator’s website to get in contact with them.
Of course, if you have a Democratic Senator, it’s also worth letting them know that you oppose the tax bill, just in case a few of them decide to jump ranks and join the republicans in harming America. We certainly hope they don’t, and are encouraged by the fact that every Democrat in the House made the right decision here, but anything could happen.
Among the bill’s cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
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Fortescue is marching towards zero emissions as it invests in new, zero-emission mining equipment options across its global operations. And that investment? It’s already paying off. One analyst says the company’s saving almost $400 million in fuel costs alone. Each year.
From massive, Liebherr-built electric haul trucks and excavators to more than $400 million in Chinese equipment from XCMG, Fortescue is putting its money where its mouth is and making real efforts to decarbonize its global mining operations.
“We’re moving rapidly to decarbonize our Pilbara iron ore operations and eliminate our Scope 1 and 2 terrestrial emissions by 2030. To achieve this target, we will need to swap out hundreds of pieces of diesel mining equipment at the end of their life with zero emissions alternatives,” said Fortescue Metals Chief Executive Officer, Dino Otranto, when the XCMG order was announced. “As the global mining industry continues to evolve, we’re proud to be at the forefront of driving innovation in value adding green technology and showing the world that industry can decarbonize.”
Those efforts aren’t just cutting back on air pollution. Electric equipment assets are helping to keep the company’s workers safe and healthy, too. What’s more, they’re saving the company money – they’re already seeing $300-400 million in fuel savings annually.
Liebherr T264 electric haul truck
The Liebherr T264 electric haul trucks now working for Fortescue defy common sense notions of size, scale, and power. Each truck tips the scales at 176 tonnes (194 tons) and can haul more than 240 tonnes (265 tons) of payload thanks to powerful electric motors and a big-as-a-house-sized 3.2 MWh battery that can be recharged in a little over 30 minutes by Liebherr’s proprietary 6 MW DC fast charger.
If you could keep the car from exploding, that 6 MW (that’s 6,000 kW to you and me) charger could zap a Tesla Model Y Long Range’s 75 kWh battery in some thirty (30) seconds.
“Fortescue has ordered 360 of (T264 battery electric haul trucks) as part of a $4 billion deal with Liebherr to electrify operations at its enormous iron ore mines,” says Gavin Mooney, general manager at Australian energy software platform, Kaluza. “Fuel and energy costs are Fortescue’s biggest operating costs as well as largest source of emissions. By electrifying operations like this it will be able to kill two birds with one stone.”
Battery electric vehicles have moved millions of tons of material at Fortescue mines over the last two years alone, and continue to keep the minerals moving with minimal less impact to the environment.
Electrek’s Take
With billions of dollars on the line and pressure to reduce carbon emissions coming from all sides, it should come as no surprise that the race is on to bring practical, electric, and autonomous heavy mining equipment to market. At CES 2024, electric equipment from Hyundai, Bobcat, Volvo CE, and Caterpillar garnered lots of attention with their innovative concepts, and analysts like IDTechEx estimate that a single 150-ton haul truck can use over $850,000 worth of fuel in a single year.
Meanwhile, big electric haul trucks like this 240 ton unit from Caterpillar can, in certain use cases with high amounts of regenerative braking, operate without any significant cost to recharge. At that point, the reduced maintenance and downtime of BEVs compared to diesel vehicles becomes icing on the TCO cake.
We spoke to Fortescue Zero executives a few months ago on a special interview episode of Quick Charge. Check it out (above) then let us know what you think of Fortescue’s fuel savings in the comments.
Sources links throughout; featured image by Fortescue Zero.
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This world’s first fully electric deconstruction site is being hailed as a landmark in sustainable urban development — and it’s powered by Siemens technology and Volvo Group’s battery-electric trucks and heavy equipment.
The deconstruction project (that’s kind of like a really careful demolition) marks the first full-scale electric deconstruction of its kind, and serves as important proof that with the right partners and the will to do it, urban construction projects like this can be carried out sustainably, today – and all without fossil fuels. It’s all part of Siemens’ €500 million technology campus redevelopment, the deconstruction site in Erlangen, Germany, and marks a pivotal step in advancing sustainable urban transformation and circular construction practices.
In collaboration with the demolition specialists at Metzner Recycling, Volvo CE deployed a fully electric fleet of equipment assets specially chosen to deliver quiet, precision demolition across the 25,000 cubic meter job site.
As well as deconstruction tasks, the electric machines helped sort and process approximately 12,800 tons of construction waste, with 96% recycled into raw materials for future use – supporting the shift towards circular materials management.
VOLVO CE
“At Siemens Real Estate, we are committed to pushing the boundaries of sustainable construction and demolition,” explains Christian Franz, Head of Sustainability at Siemens Real Estate. “This groundbreaking electric deconstruction project boasts an impressive 96% recycling rate and is a testament to our commitment to achieving excellence in sustainability … this project illustrates how partnerships and determination can create a lasting impact and help shape a more sustainable real estate industry.”
In addition the construction equipment was hauled into the site by Volvo Truck’s battery electric semi trucks, enabling emission-free operations from demolition, to crushing, materials processing, and transport.
Electrek’s Take
With a full line of electric wheel loaders, excavators, articulated haul trucks – even drum rollers and off-grid charging solutions to haul around with their electric semi trucks – Volvo is in a great position to take advantage of increasingly restrictive noise and emission regulations across Europe.
It’s too bad they’re suing California to be able to pollute more.
SOURCE | IMAGES: Volvo CE.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Hyundai offered a first look at the hot hatch earlier this week after unveiling the Concept Three, its first compact EV under the IONIQ family. The new EV, set to arrive as the IONIQ 3, already has a sporty, hot hatch look, but that could be just the start.
Hyundai has a new EV hot hatch in the making
The Concept Three took the spotlight at IAA Mobility in Munich with a daring new look from Hyundai. Based on its new “Art of Steel” design, the concept is a stark contrast to the Hyundai vehicles on the road today.
Hyundai took the “Aero Hatch” design to the next level, deeming it “a new typology that reimagines the compact EV silhouette.” And that it does.
When it arrives in production form in mid-2026, it’s expected to take the IONIQ 3 name as a smaller, more affordable sibling to the IONIQ 5.
Hyundai is set to unveil the electric hatchback next spring with an official launch planned in Europe in September 2026. According to Hyundai’s European boss, Xavier Martinet, the IONIQ 3 could make for the perfect EV hot hatch.
Martinet hinted that the IONIQ 3 could receive the “N” treatment, telling Auto Express that “The concept is quite sporty, and obviously you have heritage with N brand.” Hyundai’s European boss added that “it’s a fair topic to consider.”
Although it doesn’t sound too convincing, Hyundai’s head of design, Simon Loasby, called it “an opportunity.” Loasby was quick to add, “We’re not calling it N, it’s not approved yet.”
“But I think everyone in the company is realising what Europe needs, and that’s compact hot hatches, so it’s a topic for discussion,” Hyundai’s design boss added.
The Concept Three is 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, or about the size of the Kia EV3 and Volkswagen ID.3. Both of which are set for hot hatch variants.
If the IONIQ 3 N does come to life, it will be the third Hyundai EV to receive the high-performance upgrade, following the IONIQ 5 N and IONIQ 6 N.
The IONIQ 5 N “was just the first lap,” according to Joon Park, vice president of Hyundai’s N Brand Management Group. He told Auto Express that Hyundai is “at the starting line” and plans to apply what it learned from its first EV hot hatch to upcoming models.
If you’re looking for an affordable electric hot hatch, Hyundai already offers one. After Hyundai cut lease prices last month, the IONIQ 5 N is now listed at just $549 per month. That’s $150 less per month than in July.
Want to test one out for yourself? You can use our link to find 2025 Hyundai IONIQ 5 models in your area (trusted affiliate link).
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