The EV tax credits specifically reference critical minerals required in electric vehicle batteries, though they do not specify particular minerals by name in the available information. The tax credit hinges on these minerals’ origins, requiring that a percentage of the materials come from the U.S. or countries with which the U.S. has a free trade agreement.
However, the term “critical minerals” generally includes a range of materials crucial for battery production, often including lithium, cobalt, nickel, and graphite among others. The final rule provides an exemption for certain non-traceable materials like graphite in anode materials and critical minerals in electrolyte salts, electrode binders, or electrolyte additives until January 1, 2027.
To be eligible for a full $7,500 tax credit, vehicles must meet sourcing requirements for both critical minerals and battery components. Vehicles meeting only the critical minerals requirement are eligible for a $3,750 credit.
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