The current USA IRA Act offers tax credits of up to $35 USD per...

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    • The current USA IRA Act offers tax credits of up to $35 USD per kWh of battery.
    • The batteries in Tesla Model 3 range from 60 kWh to 82 kWh, i.e total tax credit benefit of $2,100 USD to $2,870 USD.
    • Each batteries contains 5 to 8kg of lithium, around 25 to 50 kg of LCE, or $1,000 to $2,000 USD of material.
    • So effectively, the cost of raw materials is close to free for Tesla material procured from free of Foreign Entities of Concern (FIC).
    • Currently battery materials procured from Chile and Australia are eligible tax credits, but Argentina does not have FTAs.
    • So present IRA Act is likely to spur waves of US battery gigafactories.

    https://hotcopper.com.au/data/attachments/5511/5511045-d5d83d79192a13059b8d131e1b32b6f8.jpg

 
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