If automakers want their electric cars to qualify for newly revised federal tax credits, they must be able to certify the provenance of their batteries — potentially through the use of a "battery passport."
Why it matters: Strict supply chain requirements attached to the Inflation Reduction Act's restructured electric vehicle (EV) tax credits were meant to catalyze domestic manufacturing and bolster U.S. energy independence.
- A rising percentage of critical minerals must be mined or processed in the U.S. or a trading partner, for example, for a vehicle to qualify. None of the materials can come from "foreign entities of concern," like China or Russia.
