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 Electrekreported yesterday, companies like Nth Cycle offer an innovative solution to address this through battery recycling and metal processing.
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The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
Advanced material substitution – Using recyclable and affordable materials in manufacturing.
Optimized material recovery –Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
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Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
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A view of offshore oil and gas platform Esther in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | Getty Images
President-Elect Donald Trump said Tuesday that he will reverse President Joe Biden‘s ban on offshore drilling along most of the U.S. coastline as soon as he takes office.
“I’m going to have it revoked on day one,” Trump said at a news conference, though he indicated that reversing the ban might require litigation in court.
Biden announced Monday that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. The president issued the ban through a provision of the 1953 Outer Continental Shelf Lands Act.
An order by Trump attempting to reverse the ban will likely end up in court and could ultimately be struck down.
During his first term, Trump tried to issue an executive order to reverse President Barack Obama’s use of the law to protect waters in the Arctic and Atlantic from offshore drilling. A federal court ultimately ruled that Trump’s order was not lawful and reversing the ban would require an act of Congress.
The Republican Party has a majority in both chambers of the new Congress.