Companies angling to make EV battery metals and materials — under the leadership of former Energy Department officials — are calling on House lawmakers to bolster their growing industry by tweaking the 2022 climate law during upcoming tax negotiations on Capitol Hill.
Doing so is critical to competing with China and foreign supply chains that have enjoyed decades of support from foreign governments, the Battery Advocacy for Technology Transformation Coalition, or BATT Coalition, argued in a letter to members of the House Ways and Means Committee on Wednesday.
The group is warning that incentives tied to the Inflation Reduction Act don’t do enough to bolster new supply chains — mainly EV battery metals and materials — or prevent countries like China from taking advantage of incentives tied to the law. The IRA includes a consumer tax credit of $7,500 for electric vehicles that meet rigorous domestic production requirements.
“These policies disproportionately incentivize cell and pack producers, and do not protect domestic producers from Chinese companies and other Foreign Entities of Concern (FEOCs) that enjoy state subsidies and engage in unfair trade practices,” Samm Gillard, BATT Coalition’s executive director, and Drew Ronneberg, the group’s policy director, told the committee.