Manchin's Threat to Sue Treasury Over EV Tax Credits Raises Concerns for Biden's Electric Car Agenda.

Senate Energy Committee Chair Joe Manchin may take legal action against the US Treasury after it releases guidance on battery sourcing for electric vehicle tax credits. Manchin is concerned about how Treasury will classify processing and manufacturing in determining eligibility for $7,500 EV tax credits. The new rules require 50% of the value of battery components to be produced or assembled in North America for EV buyers to qualify for $3,750 of the credit, and 40% of the value of critical minerals must be sourced from the United States or a country with which it has a free trade agreement to qualify for another $3,750 credit.