Home » Senator Who Helped Pass Inflation Reduction Act Worried Feds Are “Going To Screw Me” By Making EV Credits Too Easy To Get

Senator Who Helped Pass Inflation Reduction Act Worried Feds Are “Going To Screw Me” By Making EV Credits Too Easy To Get

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The Inflation Reduction Act could not have been passed without West Virginia Senator Joe Manchin, who surprised everyone when he helped push the green job-laden bill across the finish line. It’s less than a year since the bill passed, and no one in the Senate is seemingly madder about the bill than Senator Manchin.

We’ve got that this morning, plus a Ford deal that’s probably not going to make Manchin any happier, more veiled threats from Stellantis, and Škoda news (because we can).

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Joe Manchin Is Pissed

2024 Ev9
2024 EV9

In most modern democracies, a legislative branch (a congress or a parliament, usually) passes laws intended to tell the executive branch how to do things. There exist, however, practical limits to how much a bill can specify. For instance, a law banning the use of the term “hot dog” on packaging for any sausages not made with pork might specify the dollar amount of the fine for any violations. A law is unlikely to detail the kind of paper the fine might be written on or the name of the person writing up the fine.

It’s in the interpretation of the enforcement of laws that the executive branch tends to find a lot of its power. Take, for instance, the Inflation Reduction Act. When it passed, it used the carrot of massive tax breaks to encourage, among other things:

  • EVs to be built in North America
  • Battery packs to be assembled here, too
  • Battery materials to come from places we have trade agreements with

Automakers, as automakers do, have been trying to wiggle around those laws by claiming cars leased for Uber drivers are commercial vehicles. In addition, by pushing back the rules interpretation to later this year, the Treasury Department allowed a bunch of people to buy Teslas and claim a tax credit. Senator Manchin proposed a bill to force people to give those tax credits back. It didn’t pass.

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The next battle is over what counts as “manufactured” or “assembled” when it comes to making battery packs. How assembled is assembled? Is it like Technic, where you have to put all the little pieces together, or is it like Duplo, where you’re just pushing together the mostly formed modular pieces? The Treasury Department is on the verge of deciding.

There’s a good read on the issues today in Automotive News that has most of the details:

Once the guidance is released, the credit will require 40 percent of a battery’s critical minerals to be extracted or processed in the U.S. or in a country where the U.S. has a free-trade agreement in effect, or from materials that were recycled in North America. By 2027 — the last year of incremental increases — it will require 80 percent.

The credit also will require 50 percent of the battery components to be made or assembled in North America. By 2029 — the last year of increases for battery component production — it will require 100 percent.

So why is Senator Manchin upset?

“I think they’re going to try to screw me on this,” Manchin, a West Virginia Democrat, said at an industry event here Wednesday. “I’m willing to go to court. I’m willing to stop it all.”

[…]

“What I’m most concerned about is how they classify the processing with manufacturing,” Manchin told Automotive News. “Manufacturing is meant to bring manufacturing back to the United States. It’s not basically allowing everyone to put all the parts and build everything you can for that battery somewhere else and then send it here for assembly.”

The “they” in this situation is the Treasury Department, which is under the guidance of President Joe Biden.

How much of this is theater intended to influence them to keep requirements stiff and how much he means it is not clear, but boy it’ll be fun to watch what happens when the guidance comes out (probably tomorrow).

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Ford Is Part Of A $4.5 Billion Nickel Plant In Indonesia

The New All Electric Ford ExplorerWhen it comes to materials that are difficult to source for a battery, lithium is actually not that bad. It’s the cobalt, nickel, and manganese that tend to be a little bit tougher. You know who has an ass ton of nickel? The island nation of Indonesia!

That’s good news for Indonesia, which wants investors to build a bunch of nickel processing facilities in the country. In fact, Indonesia banned the export of unprocessed nickel for that reason a few years ago for this very reason. Guess who is stepping up to snatch some of that nickel? Ford.

Reuters has the details:

U.S. carmaker Ford (F.N) has joined PT Vale Indonesia (INCO.JK) and China’s Zhejiang Huayou Cobalt’s as their new partner in a $4.5 billion nickel processing plant in Indonesia, the companies said on Thursday.

The investment is Ford’s first in the Southeast Asian country and underscores growing appetite among automakers for raw materials used in producing electric vehicle (EV) batteries, which account for about 40% of a vehicle’s sticker price, aiming to cut costs and close the gap on EV market leader Tesla (TSLA.O).

If you were curious, the United States does not have a comprehensive free trade agreement with Indonesia, so it’s not clear where this processed nickel is going. Ford has plenty of operations in Europe, Asia, and elsewhere that will need resources.

Stellantis CEO Seems To Be Gunning For A Fight

Carlos TavaresThere’s already been a decent amount of discussion around these parts about Stellantis CEO Carlos Tavares and the showdown that’s brewing between the company and the UAW. Perhaps the two sides have cooled off a bit.

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Ahhh nope.

Stellantis is conducting a “manufacturing assessment” of the Sterling Heights facility that makes the Ram 1500.

From a Detroit News article about the hubbub:

CEO Carlos Tavares has emphasized the need to find savings, because electric vehicles are 40% more expensive than their internal combustion engine counterparts. He’s said there is significant room for improvement in North American manufacturing efficiency based on best practice elsewhere and has noted how U.S. absenteeism is higher than Europe’s.

It’s worth noting here that autoworkers who build cars for Stellantis in Italy get an EU guaranteed 20 days off and another 10 from the Italian government.

The United Auto Workers represent both the Belvedere, Illinois plant that’s been mothballed and the Sterling Heights facility. What does UAW think about this? Here’s UAW VP Rich Boyer earlier this week to workers:

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“I’m going to make one commitment to everybody in this room: If you’re in trouble, we’re coming,” he said. “Stellantis is coming. We’re coming to your side. We’re going to walk the line with you. We’re going to do whatever we’ve got to do to make sure you survive.”

Carlos Tavares worked under Carlos Ghosn and, somewhat famously, departed Nissan allegedly because he was worried Ghosn would never give up the top role. Tavares is a self-described “performance psychopath” and seems to be bringing that energy to North American manufacturing.

He’s probably not wrong about the inefficiencies inherent in some (or all) of the company’s facilities and the need to reform them, but with a changing and potentially ascendent labor movement in this country I’m curious about his tactics.

I Can’t Wait For This Škoda Camper Concept

Camper SkodaEvery year the students at the Škoda Vocational School put together a concept car. They’ve had some wild ideas, ranging from little beach cars to big ol’ rally crossovers. This year’s concept combines two of our favorite things: Škodas and campers:

In their design sketches, the students have already defined the personality of their dream car. As a battery electric office camper, the first ever Student Car based on an Enyaq iV is intended to be a companion on journeys to new horizons. A personal space for experiences and discoveries, it also underlines Škoda’s commitment to electric mobility. As is typical for the brand, the upcoming Student Car will benefit from iconic “Simply Clever” features and state-of-the-art technology, while also incorporating a wide array of sustainable materials. The aim of the car is to let its owner become a digital nomad – working without being tied to a desk, free to move wherever and whenever they want to. It’s a perfect match for Škoda’s new “Explore More” concept and precisely the right vehicle for modern explorers and independent adventurers.

Skoda Cmaper

This thing is gonna be cool.

Let’s Try Something

I might be able to have you comment on specific content with inline comments.

Let’s see if it works.
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Photos: Stellantis, U.S. Senate, Ford, Kia, Skoda

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MATTinMKE
MATTinMKE
1 year ago
Let's see if it works." Read more »

Seems like it!

WK2JeepHdStreetGlide
WK2JeepHdStreetGlide
1 year ago
Let's see if it works." Read more »

Interesting

Peter Foreman-Murray
Peter Foreman-Murray
1 year ago
Let's see if it works." Read more »

Hmmmm

Space
Space
1 year ago
Let's see if it works." Read more »

Yes, hopefully this works.

Frederick Tanujaya
Frederick Tanujaya
1 year ago

They gonna take my nickel and place it into cars they dont bring to us, i want it to be in our locally assembled ioniq 5s

Root
Root
1 year ago
Let's see if it works." Read more »

It says there are 13 such comments but I can only see the first three.

Stef Schrader
Stef Schrader
1 year ago
Let's see if it works." Read more »

Puffalump.

Patrick
Patrick
1 year ago

“Is it like Technic, where you have to put all the little pieces together, or is it like Duplo, where you’re just pushing together the mostly formed modular pieces?”

Call me Goldilocks, but I feel Lego are juuust right.

CrystalEyes
CrystalEyes
1 year ago
Reply to  Patrick

Technic and Duplo, and no one put an ‘s’ on Lego! I’m so happy 🙂

Gary Lynch
Gary Lynch
1 year ago

I hope Autopian does not go down the political s#ithole…..

Because our political system is deeply divided and biased.

plus- we are a representative republic, not a pure democracy.

FuzzyPlushroom
FuzzyPlushroom
1 year ago
Let's see if it works." Read more »

Sure looks like I can. Neat!

MAX FRESH OFF
MAX FRESH OFF
1 year ago
Let's see if it works." Read more »

What an age to be alive!

Last edited 1 year ago by MAX FRESH OFF
Arlen Moss
Arlen Moss
1 year ago

Manchin is a self-serving lowlife who has lined his own as well as his family’s pockets by abusing his office. When he dies, there shouldn’t be as much as a dilapidated public toilet that bears his name.

MrLM002
MrLM002
1 year ago
Reply to  Arlen Moss

Beware, Manchin could be a member of this site and if so no matter how public of a personality they are you’re not allowed to say anything negative about them.

Amberturnsignalsarebetter
Amberturnsignalsarebetter
1 year ago
Let's see if it works." Read more »

Wow, the commenting system has gone from David’s Jeep FC to David’s BMW i3!

Last edited 1 year ago by Amberturnsignalsarebetter
Vetatur Fumare
Vetatur Fumare
1 year ago
Let's see if it works." Read more »

We’ll find out momentarily
(Yep – and I can finally edit, too!)

Last edited 1 year ago by Vetatur Fumare
Automotiveflux
Automotiveflux
1 year ago
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seems so

PaysOutAllNight
PaysOutAllNight
1 year ago
Let's see if it works." Read more »

If there’s an Autopian meetup in the comments, I’m not going to miss it!

Tim R
Tim R
1 year ago
Let's see if it works." Read more »

Ys

2cv8
2cv8
1 year ago

How do I see more than one comment?

CPL Rabbit
CPL Rabbit
1 year ago
Reply to  2cv8

Comments are paged. Look below the last displayed comment.

2cv8
2cv8
1 year ago
Reply to  CPL Rabbit

I see them now, but earlier there was only one comment showing and no page numbers.
Thanks.

Chemodalius
Chemodalius
1 year ago
Let's see if it works." Read more »

Yes?

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