The Republican-led House passed the One Big Beautiful Bill, threatening to devastate the electric vehicle sector by dismantling incentives critical to its growth. An analysis indicates a potential 40% reduction in annual EV sales by 2030, primarily due to the elimination of key tax credits and rebates for North American-made EVs and domestic battery production. Additionally, the bill introduces new fees and deregulates emission standards, negating prior climate efforts. Experts caution that diminished EV demand will further adversely impact the battery manufacturing industry, which has significantly contributed to a manufacturing renaissance in America since 2022.
The One Big Beautiful Bill threatens to significantly reduce EV sales and dismantle the burgeoning battery manufacturing industry, severely impacting climate initiatives.
The bill’s destruction of pro-EV tax credits could reduce annual electric vehicle sales by roughly 40% in 2030, according to an analysis from Princeton's REPEAT Project.
The legislation pays for tax cuts by eliminating the Inflation Reduction Act, which had provided incentives for domestic battery production and electric vehicle purchases.
Experts warn that cuts to EV incentives will create a ripple effect, reducing battery demand, which in turn threatens the growth of America’s battery manufacturing sector.
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