A Nissan Leaf electric vehicle is displayed at the Canadian International Auto Show in Toronto in February 2020. – ReuterspicThe US Treasury said on Monday that Volkswagen , BMW, Nissan, Rivian, Hyundai and Volvo Cars electric vehicles will lose access to a US$7,500 tax credit under new rules for battery sourcing.
The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden’s effort to make 50% of US new vehicle sales by 2030 EVs or PHEVs. Nissan Motor said it is “working closely with our suppliers and are hopeful that Leaf will qualify for at least partial credit in the future”.
Earlier, Ford Motor Co and Chrysler parent Stellantis NV said tax credits on most of their electric and PHEV models would be halved to US$3,750 on April 18. Treasury confirmed the automakers' calculations.