{"id":81170,"date":"2025-03-13T19:25:18","date_gmt":"2025-03-13T23:25:18","guid":{"rendered":"https:\/\/autosector.com\/?p=81170"},"modified":"2025-03-13T19:25:18","modified_gmt":"2025-03-13T23:25:18","slug":"ira-ev-tax-credits-princeton-study","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=81170","title":{"rendered":"Killing IRA EV tax credits will ruin US EV and battery industries \u2013 Princeton study"},"content":{"rendered":"
\n\t\"Volkswagen
\n\t\t\t\tVolkswagen ID.4 production at Chattanooga, TN (Source: VW)\t\t\t<\/figcaption><\/figure>\n

A new study<\/a> from the REPEAT Project<\/a> led by Princeton University\u2019s ZERO Lab warns that the repeal of Inflation Reduction Act (IRA) tax credits could decimate the growing EV manufacturing sector.<\/p>\n

<\/p>\n

The report \u201cPotential Impacts of Electric Vehicle Tax Credit Repeal on US Vehicle Market and Manufacturing\u201d clearly outlines the risks. The Princeton study states that repealing the IRA federal tax credits and the EPA\u2019s clean vehicle regulations would sharply reduce EV demand. <\/p>\n

Specifically, EV sales could drop around 30% by 2027 and nearly 40% by 2030 compared to sticking with the policies implemented by the Biden administration. That means the share of EVs among new cars sold would shrink dramatically \u2013 from about 18% to 13% by 2026 and from 40% to just 24% by 2030.<\/p>\n

\u201cWhile no one has a perfect crystal ball, this is our best attempt to survey available quantitative forecasts and develop an outlook on US EV sales,\u201d explained the study\u2019s project leader, Jesse D. Jenkins, assistant professor at Princeton\u2019s Department of Mechanical & Aerospace Engineering and Andlinger Center for Energy & Environment in an email. \u201cThe report is also the only analysis I\u2019m aware of to date that draws the connection to US manufacturing as well.\u201d<\/p>\n

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Here\u2019s why this matters: The report points out that repealing these policies wouldn\u2019t just slow down EV adoption \u2013 it could seriously derail the US manufacturing renaissance now underway. Up to 100% of planned expansions for EV assembly plants could be canceled or shuttered. Battery manufacturing would also take a huge hit, with between 29% and 72% of battery cell production capacity becoming redundant by 2025. That means factories under construction or those just coming online would be at risk.<\/p>\n

To put that into perspective, an Environmental Defense Fund report released in January<\/a> found that $197.6 billion worth of investments in EV and battery manufacturing have been announced at 208 facilities around the US, with two-thirds announced since the passage of the Inflation Reduction Act in August 2022.<\/p>\n

It\u2019s probably a good time to point out that, in order to qualify for IRA federal tax credits, EVs must be domestically assembled, use battery components that have been substantially domestically produced, and use critical minerals produced, processed, or recycled in North America or free trade agreement countries.<\/p>\n

Why, then, is the Trump administration torpedoing an industry that\u2019s achieving the very thing it says it wants to achieve, which is to boost domestic manufacturing and jobs? <\/p>\n

And let\u2019s not forget the broader EV supply chain \u2013 materials, parts, and component suppliers across the country would also suffer, though these effects haven\u2019t even been fully quantified yet.<\/p>\n

Bottom line: Repealing the tax credits and regulations wouldn\u2019t just slow down EV sales \u2013 it would threaten the jobs, investments, and communities counting on America\u2019s EV manufacturing boom.<\/p>\n

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Read more:<\/strong> Republican districts lose billions as clean energy cancellations surge<\/a><\/p>\n

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<\/div>\n","protected":false},"excerpt":{"rendered":"

Volkswagen ID.4 production at Chattanooga, TN (Source: VW) A new study from the REPEAT Project led by Princeton University\u2019s ZERO Lab warns that the repeal of Inflation Reduction Act (IRA) tax credits could decimate the growing EV manufacturing sector. The report \u201cPotential Impacts of Electric Vehicle Tax Credit Repeal on US Vehicle Market and Manufacturing\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-81170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/81170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=81170"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/81170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=81170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=81170"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=81170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}