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Inflation Reduction Act - battery component requirements

Discussion in 'ID.4' started by DaleL, Dec 20, 2022.

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  1. Dec 20, 2022 #1
    DaleL

    DaleL Active Member

    Flagler County, FL
    The US Treasury announced yesterday (12/19/2022) that they will issue a notice of proposed rule making (NPRM) in March with proposed guidance on the critical minerals and battery components requirements. "By statute, the critical mineral and battery component requirements take effect only after Treasury issues that proposed rule."

    VW is reportedly sourcing the Chattanooga ID.4 batteries from the Georgia SK Innovation battery plant. At issue was whether the batteries would meet the critical mineral and battery component requirements of the Inflation Reduction Act.

    Until the US Treasury issues the proposed rule, it does not matter. All Chattanooga ID.4s should qualify for the full $7,500 tax credit until at least March. My ID.4 Pro S Plus is predicted to be built and delivered by the end of February 2023.

    https://home.treasury.gov/news/press-releases/jy1173
     
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  2. Dec 27, 2022 #2
    danrjones

    danrjones Active Member

    Ridgecrest, CA
    Actually, it gets more complicated - VW sent a letter to (most) reservation holder, including myself, that A) The are raising the price by $1500 on Jan 4th, and B) they are sourcing BOTH SKI and LG packs starting in the new year for RWD vehicles. The LG will have a longer charging time to hit 80%, and a lower max kW speed. But based on the email, you will pay the same price. Further, it is possible the LG pack might qualify differently come March for the tax credit.

    Luckily I found an unsold ID4 last week, and jumped on it. So my search is over.
     
  3. Dec 29, 2022 #3
    DaleL

    DaleL Active Member

    Flagler County, FL
    LG does have a battery plant in Michigan. However, those batteries have previously not been used by VW. I believe that effective 1/1/2023 the batteries must be assembled in North America. It is the Treasury rule concerning the components of the batteries which is delayed until March 2023. It would be nice if VW could be more upfront and provide more details as to the battery situation.

    I got the email ("letter") concerning the price increase and RWD battery packs. I have reserved (Locked and accepted by factory) an AWD ID.4 Pro S Plus. It is expected to be delivered by the end of February.
     
  4. Dec 30, 2022 #4
    danrjones

    danrjones Active Member

    Ridgecrest, CA
    Given all the uncertainty I'm glad I was able to find one this year. Plus it goes on this tax year, which means just a few months I'll have it and pay myself back.

    CA already approved my clean rebate so that went really fast. One day from turning in all my documents.
     

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