<img src=https://nenpower.com/wp-content/uploads/2025/04/image-11773.webp alt=’What percentage of the battery’s value must be manufactured in North America to qualify for the $7,500 credit’ />
To qualify for the full $7,500 tax credit on electric vehicles, a key requirement concerns the percentage of the battery’s value that must be manufactured or assembled in North America. Specifically:
- For half of the credit ($3,750), in 2024, at least 60% of the value of battery components must be produced or assembled in North America.
- This threshold will increase incrementally until 100% must be manufactured or assembled in North America starting in 2029 to qualify for the full credit.
Therefore, to get the full $7,500 credit, the battery component percentage requirement will gradually rise, beginning at 60% in 2024 and reaching 100% by 2029. The requirement focuses on manufacturing or assembly of battery components in North America, distinguishing it from the separate mineral sourcing and recycling requirements that account for the other half of the credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-percentage-of-the-batterys-value-must-be-manufactured-in-north-america-to-qualify-for-the-7500-credit/
