"Electric Vehicle Push Sparks Debate Over Market and Regulations"

Democratic Senator Joe Manchin expressed frustration with the Inflation Reduction Act's tax credit for electric vehicles, taking issue with loopholes in its distinction between manufacturing and processing of materials. He claimed that by grouping the production of cathode powder, lithium and other materials for battery production into "processing," the Energy Department was loosening its commitment to manufacturing electric vehicles domestically. Energy Secretary Jennifer Granholm pushed back on Manchin's criticisms, saying that the supply chains are trending toward domestic production due to the Inflation Reduction Act's provisions. The act requires 40% of the value of critical minerals in the battery to be extracted or processed in the United States or a country with which the United States has a free trade agreement, or be recycled in North America.