It’s possible no electric vehicles will qualify for the new tax credit - Ars Technica

At least it will if their EV batteries are mostly made within North America, with at least 40 percent of the materials used having been extracted and processed within North America or a country with a free trade agreement.

Now, instead of being based on battery capacity, half the credit ($3,750) is tied to where the pack is made, and the other half its supply chain.

Automakers and battery companies are starting to build factories in North America.

More plants are in the works: Ford and SK are building plants in Kentucky and Tennessee, to name a couple, with US battery plants also in the works at Stellantis and Volkswagen, among others.

So some EVs may qualify for at least half the full $7,500 credit, depending upon how the value of the battery is determined.

Even if these domestic battery plants increase the US's share of battery manufacturing, at least 40 percent of the critical chemicals that go into those cells must be extracted and processed locally, a percentage which will escalate by 10 percent each year.

Right now, North America doesn't have the ability to handle that production—about two-thirds of the world's lithium, much of its cobalt, and almost all its graphite are processed in China.

Domestic recycling of lithium-ion batteries will provide one local source of battery materials, and the US contains lithium deposits that have yet to be exploited.

That includes how one's income will be determined in the case of a point-of-sale rebate and the manufacturing value of a battery.