House approves bill that could paralyze US EV development

Product development is a team sport, and or not it's miles no secret that automakers need assistance adapting to the upcoming electric future.

Some automakers are attempting to search out assist from others; to illustrate, Hyundai and General Motors have just announced that they plan to collaborate on future product development.

Related: Hyundai and General Motors join forces to revolutionize future cars

In Japan, Toyota and Subaru are collaborating on future EVs and Nissan, Mitsubishi and Honda are teaming as much as share technology.

But once in a while, the superior people for the job are related to what some may classify as enemies or adversaries, and the powers that be will do whatever they can be able to to prevent American companies from collaborating with them.

The House's EV stopgap

On September 12, lawmakers all the way throughout the U.S. House of Representatives passed a bill that has the which that which one can have in mind to restrict electric vehicle tax credits and jeopardize essential partnerships which may perhaps dictate the future of American automakers.

The bill in question is the End Chinese Dominance of Electric Vehicles in America Act of 2024. Introduced by Rep. Carol Miller (R-WV), the bill would strip an EV's eligibility for IRA tax credits of as much as $7,five hundred if the manufacturer uses battery technology licensed from China.

In a press release made after the bill's introduction in April, Miller argued that her bill would keep American taxpayer money out of Chinese hands.

"China, or any adversary for that matter, should no longer have any access to American tax credits. Narrowing the definition of the Foreign Entity of Concern expands opportunities for American manufacturing while protecting our resources and our people," Miller before now said.

"The Biden Administration’s dedication to the Chinese Communist Party embarrasses america, and Congress should lead when Joe Biden refuses to."

Though the bulk Republican House was once in a position to pass this bill, among the many concerns came from the opposite side of the aisle.

Rep. Debbie Dingell (D-MI) argued against her Republican statespeople that the bill would “bring about American job losses” and make it “more demanding for American companies" like the automakers in Detroit to compete. Additionally, Rep. Judy Chu (D-CA) also pointed out that Miller's bill contains a problematic provision that extends the list of entities barred from receiving IRA tax credits to incorporate companies owned by a "citizen, national or resident” of China.

“This bill includes a damaging provision that will target immigrants who came to america from an adversary usa, but who themselves will not have anything to do with their governments of origin,” Chu said.

The White House also opposes the bill. In a press release dated Sept. eleven, they noted that the Biden Administration opposes it on the root that it "would raise taxes on American consumers, punish American auto manufacturers, threaten good-paying auto jobs, undermine our Administration’s work to supply protection to the American automotive supply chain from unfair Chinese competition, and set back efforts to reach energy security and strive against climate change."

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The Impact on Industry

Notably, one amongst of the biggest opponents of the measure is the Shawn Fain-led United Auto Workers (UAW); the union representing the factory workers at Detroit's Big Three automakers.

The @HouseGOP is going after nearly 2,000 battery manufacturing jobs in Michigan that we negotiated below our master agreement. We urge a NO vote on HR 7980. Don’t get distracted by their rhetoric and don’t take the bait. This bill is an attack on good union jobs all the way throughout the United…— UAW (@UAW) Sept. eleven, 2024

In a post on X (formerly is generally called Twitter), the UAW voiced their opposition to the bill, noting that or not it's miles an “attack on good union jobs” and a blow to “nearly 2,000 battery manufacturing jobs in Michigan”.

Two of Detroit's Big Three automakers have already linked up in some capacity with "problematic" Chinese entities, namely for progressed EV battery technology by an organization also is generally called Latest Amperex Technology Company, better is generally called CATL.

Ford (F) is currently constructing a fresh EV battery plant also is generally called the Blue Oval Battery Park near Marshall, Michigan. The now-$2 billion factory will produce 20 gigawatt hours of batteries and employ 1,seven hundred people.

The matter is that lawmakers raised concerns about Ford reaching out to CATL to license the technology to be used on the plant. When finished — which Ford estimates at sometime in 2026, CATL will train Ford workforce to produce EV batteries using CATL lithium iron phosphate battery (LFP) batteries for Ford-branded vehicles.

Related: EVs have a difficulty Ford's partner aims to repair

Additionally, a fresh report from Reuters says that General Motors (GM) is in talks to buy EV batteries that will use technology from CATL, an incredibly good technique to be assembled all the way throughout america.

It truly is much no wonder why Ford and GM would take CATL below its wing. At the Beijing Auto Show in April 2024, CATL unveiled its most modern LFP-based EV battery, which eclipses most other EV batteries on the one issue boggling down potential American EV buyers: range.

The new battery, also is generally called the Shenxing Plus, boasts a driving range of greater than 1,000 kilometers, or 621 miles of range on a single charge. Per CATL, the emblem new LFP batteries are also in a position to 370 miles of driving range after just 10 minutes of charging.

"Longer driving range and faster charging speed is still the main requirements for todays consumers," Huan said on the Bejing Auto Show. "Shenxing Plus enables you to shuttle freely and enjoy your life."

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