If a vehicle only meets one of these two requirements, it qualifies for a $3,750 tax credit.
50% of the value of battery components must be produced or manufactured in North America in fiscal year 2023, with the minimum percentage increasing annually.
40% of the value of critical minerals used for the vehicle must be extracted, processed, and/or recycled domestically or in a country the U.S. has a free trade agreement with, with the minimum percentage increasing annually. EV manufacturing requires a range of minerals, including cobalt, copper, nickel, graphite, and lithium.
Current cost structure of EV battery
60kwh
82kwh
1
25 kt to 50 kg LCE
$1,000
$2,000
2
15kg Nickel
$300
$300
3
3kg Cobalt
$90
$90
4
500g of Neodymium-Praseodymium
$75
$75
5
$1,465
$2,465
50ktpa plant can provide enough lithium for 1 million battery. According to Google, replacement cost of 82 kwh is around $5K to $17K. Fascinating tlow payback ratio for gigafactories buying Phoenix and spending $1.5bn CAPEX for producing 50ktpa plant.
