Washington – US Rep. Jason Smith, R-Mo., is asking Ford Motor Co. for more details about the automaker’s deal with China’s contemporary Amperex Technology Co. Ltd. to use its technology in a planned $3.5 billion battery plant in Michigan .
In a letter sent Monday to Ford CEO Jim Farley, Smith raised concerns about whether the arrangement relies on “loopholes” in the electric vehicle tax credit’s battery component sourcing requirements and violates the intent of the law to protect American energy security. and reduce dependence on foreign adversaries. Such as China for battery materials and manufacturing.
“This arrangement appears to take advantage of a loophole [Inflation Reduction Act] The rules regarding battery components manufactured or assembled by “a foreign entity of concern,” wrote Smith, who chairs the House Ways and Means Committee. “I am concerned that Ford funded this project with the IRA’s clean vehicle credits and I am concerned that other automakers may try to use loopholes in the IRA to avoid guardrails meant to protect American enterprises and workers.” Are.”
Smith is seeking answers on Ford’s license agreement with CATL, including whether it expects EVs with batteries produced at the plant to qualify for the tax credit under Section 30D and whether Ford will qualify under Section 45X. plans to claim the tax credit under , which applies to the production of certain Battery components and materials.
in a statement to automotive newsFord said many of the claims about the Michigan battery plant are “false.”
“Ford has been very clear that any tax dollars will go only to our wholly owned subsidiary, not CATL or any other entity,” said Melissa Miller, a spokeswoman for the automaker. “We will pay CATL to license its battery cell technology – just as we would any other contractor, regardless of where in the world we built this plant.”
Provisions in the Inflation Reduction Act make it more attractive for Ford to invest in the US “rather than making these batteries elsewhere … or buying and importing them exclusively, as our competitors do,” That said, Ford had considered several locations. countries.
“Adding this type of battery to our lineup will help make EVs more affordable for more customers,” Miller said.
Smith also sent separate letters to 10 other automakers — Audi, BMW, General Motors, Hyundai, Nissan, Rivian, Stellantis, Tesla, Volkswagen and Volvo Cars — to inquire whether they would also commit to protecting American are using loopholes in the Inflation Reduction Act to circumvent it. staff. He is seeking answers by May 1.
As of Tuesday, new EVs will have to meet increasingly stringent battery component and critical mineral requirements to qualify for full or partial credit under Section 30D.
Starting in 2024, vehicles are ineligible if they include any battery components that are manufactured by a “foreign entity of concern,” which can include companies controlled by China. This exclusion for critical minerals begins in 2025.
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This news is auto-generated through an RSS feed. We don’t have any command over it. News source: Multiple Agencies: Autocar India, hindustantimes, economic times, autonews
