This is an interesting article, especially for trade policy wonks, about how the US Inflation Reduction Act contains a very unfair clause that subsidizes 100% of the EV battery production in the US, and undermines our competitiveness at being part of the EV battery value chain. It actually could lead to a 100% US-sourced EV receiving a $5,000 incentive in Canada!
The author concludes that he has some hopes that Francois-Phillippe Champagne is enough of a fighter to challenge this. Another interesting take is that, should the Republicans take back the senate in November, Lindsey Graham, of all people, might actually be in a position to contest this.
The ‘EV frenzy’ of battery manufacturing is passing Canada by
Quote:
America’s Inflation Reduction Act may prove to be the ultimate road-block to the Canadian automotive industry
David Booth
Oct 21, 2022
BMW, as part of what Automotive News is calling an “EV frenzy” south of the border, yesterday unveiled plans to build a 30-gigawatt-hour EV battery manufacturing facility in Woodruff, South Carolina. It’s all part of a US$1.7-billion-dollar investment to build as many as 300,000 EVs a year in the United States. And, just last week, Audi said it was considering building its very first plant in the U.S., specifically to produce EVs. Mercedes-Benz, meanwhile, will be churning out 100,000 battery-powered vehicles as soon as next year in Vance, Alabama. More importantly, it too is building a battery-cell plant — using the same supplier, Envision AESC, as BMW, no less — to feed the roughly 300,000 EVs it hopes to build in the southern states.
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