General Motors announced today that its customers will benefit from the full $7,500 Clean Vehicle Purchase Incentive (federal tax credit), across the entire EV lineup as long as vehicles are under the MSRP cap ($55,000 for cars and $80,000 for SUVs, vans, pick-up trucks).
Let's recall that the treasury’s proposed guidance on the critical minerals and battery component requirements take effect on April 18 (previously expected on March 31). Many plug-in electric cars will lose their access to the incentive or it will be reduced to $3,750, like in the case of the entry-level Tesla Model 3 RWD.
Only models that are locally produced and meet two new requirements will receive the full credit:
- 40 percent of the value of critical minerals need to be mined or processed in the United States (or FTA countries), or recycled in North America
- 50 percent of the value of battery components must be manufactured or assembled in North America
Those requirements will gradually increase in the following years to ensure that all-electric cars and key elements (like batteries) are produced locally.
General Motors is now well prepared for the transition, thanks to significant investments, partnership with LG Energy Solution (battery joint ventures), and other partners.
The company explains that in effect, "now leads the industry in the number of models qualifying for the full $7,500 consumer incentive."
The company listed all currently available or upcoming Chevrolet and Cadillac models, including the amazingly affordable Chevrolet Bolt EV/Bolt EUV duo (batteries for those models are produced by LGES in Michigan). Meanwhile, the Ultium-based Chevrolet and Cadillac models will get batteries from Ultium Cells (a joint venture with LGES - currently, there is one plant in Ohio and two more under construction).
"Today, we are thrilled to share a further update that we expect that Chevrolet Bolt EV and Bolt EUV will continue to qualify for the full $7,500 credit after Treasury’s proposed guidance on the critical minerals and battery component requirements take effect on April 18. This means that qualifying customers will have access to the full $7,500 credit across our entire EV fleet under the MSRP cap in 2023:
- Cadillac LYRIQ
- Chevrolet Bolt EV
- Chevrolet Bolt EUV
- Chevrolet Equinox EV SUV
- Chevrolet Blazer EV SUV
- Chevrolet Silverado EV
Fleet customers including for BrightDrop and the Chevrolet Silverado EV will benefit from the $7,500 commercial incentive."
As we can see, there are no GMC Hummer EV Pickup/GMC Hummer EV SUV on the list, but those models would not qualify anyway, due to its price, above the $80,000 cap.
GM's all-electric vehicle sales are booming with over 20,000 units delivered in Q1 2023. Considering that the incentive will be maintained, and some of the competitors will not be eligible for the incentive (imported cars, cars with imported batteries), as well as expansion of the lineup, we should expect electrifying growth.
