STATEMENT on Proposed IRS Rules for EV Tax Credits
New standards would ensure electric vehicle battery materials are sourced responsibly

Background:
Last week the Internal Revenue Service proposed a rule designed to encourage rapid deployment of electric vehicles manufactured using more responsibly sourced components and minerals. The Inflation Reduction Act provided electric vehicle tax credits (30D) for batteries made from domestic materials or sourced free trade agreement countries, including recycled minerals in North America (IRA, Public Law 117-269, Section 13401(e)).  This proposal builds upon the Investment in Infrastructure and Jobs Act (IIJA, Public law 117-58, Sections 40207, 40208, and 40209) grants and taskforce recommendations that Congress directed the Department of Energy and Environmental Protection Agency to create for effective battery design, labeling, recycling, and extended producer responsibility models. 

The European Union recently finalized their Battery Regulation. Soon, almost all electric vehicle batteries sold in the EU market will be required to have a QR label (battery passport), recycled content, producer responsibilities, and supply chain human rights and environmental due diligence. The European Parliament begins debate soon on their response to the IRA, the EU Raw Critical Materials Act. Both continents appear to support circular economy subsidies. 

Below is a statement from Aaron Mintzes, Earthworks Senior Policy Counsel:

"We call on the Biden administration to finalize this rule to ensure our electric car batteries are built in a just, sustainable manner.  Responsibly sourcing battery materials, domestically and from allied nations, will help the United States grow our circular economy, reduce demand for newly mined minerals, and help secure the supply chains we need for a rapid transition to clean energy.  All takeback, transport, disassembly, and recycling of batteries must center environmental justice, protect workers, and minimize toxicity."

For more information:
* Achieving Zero Emissions with More Mobility and Less Mining
* Reducing new mining for electric vehicle battery metals: responsible sourcing through demand reduction strategies and recycling
* Declaration on the Mining and the Energy Transition 
* Aaron Mintzes, Senior Policy Counsel, testimony before the House Natural Resources Subcommittee on Oversight and Investigations regarding “Dependence on Foreign Adversaries: America’s Critical Minerals Crisis.”