Sen. Joe Manchin Criticizes Biden Administration’s Electric Vehicle Tax Credit Rules

The Biden administration’s new interpretation of which vehicles can qualify for electric vehicle tax credits is sparking controversy, with centrist Democrat Sen. Joe Manchin criticizing the move for potentially allowing batteries containing Chinese materials to be eligible for the credits.

Manchin slammed the administration for what he sees as a disregard for the law in their eagerness to flood the market with electric vehicles. The rule issued by the administration loosens provisions in the Inflation Reduction Act that previously barred credit eligibility for vehicles with batteries containing materials from China, North Korea, Russia, or Iran.

The new rule includes a two-year carve-out for minerals with difficult-to-trace origins and extends the carve-out to graphite, a key component of EV batteries often sourced from China. Manchin argued that this decision could allow these countries to remain in the US supply chain, calling it “outrageous and illegal.”

Supporters of the measure defend the flexibility in the rule, stating that it is necessary to give electric vehicle producers time to secure their supply chains. Manchin, who played a crucial role in passing the Inflation Reduction Act, has been vocal in his criticism of the Biden administration’s implementation of the law, including their handling of credits for EV chargers and hydrogen energy.

The debate over the new rule highlights the ongoing tensions within the Democratic party over environmental policies and international trade relations. Stay tuned for further developments on this issue.