It looks like the IRA is quickly changing OEM supply chains and battery cell choices.
Reuters Article - June 7, 2023
"New battery rules went into effect in April that lowered the credit of the Model 3 Standard Range Rear Wheel Drive and Long Range All-Wheel Drive to $3,750. Tesla last week on its website said that all versions of the Model 3 again qualify for the full credit. The government confirmed the change on its fueleconomy.gov website."
"Analysts said Tesla may have tweaked its battery supply chain to meet both battery mineral and battery component requirements for federal subsidy.
Tesla may have dropped CATL in favor of Panasonic or LG Energy Solution (373220.KS) for U.S.-made Model 3 Rear Wheel Drive, the cheapest version, Benchmark Mineral Intelligence (BMI) analyst Caspar Rawles said.
The subsidy value would far outpace the saving of using cheaper iron-based cells used by CATL, he said.
"It is highly likely it is Panasonic but there may be some concerns around cell availability if they need to supply enough for all U.S. Model 3s," he said.
Tesla used CATL's LFP battery cells for its Model 3 Rear Wheel Drive and nickel-based cells from LG Energy Solution for its Model 3 Long Range, analysts said."
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