US Automakers Get EV Sourcing Reprieve
Treasury department gives them three extra years to comply with stricter rules, potentially making more EVs eligible for tax credits.
Automakers now have more time to comply with rules governing sourcing of battery materials, such as graphite, of which China has the majority of the world’s supply.
Pexels/Kindel Media
The Biden administration has temporarily eased rules restricting electric-vehicle battery materials from China and other countries classified as Foreign Entities of Concern, potentially making more models eligible for tax credits.
The treasury department delayed enforcement of the restrictions, which officially took effect Jan. 1, until 2027, giving automakers more time to comply with rules governing sourcing of battery materials, such as graphite, of which China has the majority of the world’s supply.
The rules are tied to federal tax credits of up to $7,500 per EV and had sharply cut the number of EVs eligible for the breaks. Now carmakers can source some battery materials from the restricted countries while they work toward compliance in three years.
The government has been trying to wean the U.S. economy from Chinese suppliers through such restrictions, along with incentives for domestic production of EV materials.
More tax credits could buoy EV sales, which have waned in recent months, both in the U.S. and Europe.
Originally posted on Auto Dealer Today
More Showroom
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →