Would the full $7.5k apply towards the MYLR and MYP based on the battery requirement?
Most people are assuming under the current language that the MY would be covered since it is under the SUV dollar cap. But I think these are the most troubling clauses....
- $3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
- The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
What does '40% of its battery critical minerals' mean? I assume they are talking about the battery cells here. What does 40% mean? By weight? By cost? Does anyone know where Tesla gets the minerals for their battery cells? Lithium? Nickel? Cobalt? Aluminum? Likewise, 50% of the battery components? I assume this is the battery structure, containment, battery controllers etc. I assume Tesla has this part easily covered since the MY battery packs are made in the US. The minerals I really have no idea where they come from. Even for manufacturers from Korea, where are they getting their minerals? Not from Korea. Australia is okay, Chile is okay, China is not.
I couldn't find an exact make up of a Tesla NCA cell, but I found this from a paper on battery recycling...
"By weight percentage (g material/g battery), a typical lithium-ion battery comprises about: 7% Co, 7% Li (expressed as
lithium carbonate equivalent, 1 g of lithium = 5.17 g LCE), 4% Ni, 5% Mn, 10% Cu, 15% Al, 16% graphite, and 36% other materials"
In reality this clause could cause a lot of issues. Hopefully it changes. Establishing new sources for minerals like these take time. So how are manufactures supposed to comply with this? Who do they have to 'prove' this to? Do they self-certify the make-up of the cells are compliant? What a mess. Hopefully this whole thing gets simplified before it passes.