U.S. battery sourcing guidance to cut some EV tax credits -official

WASHINGTON (Reuters) – The U.S. Treasury Department’s long-awaited guidance on battery sourcing requirements for electric vehicle tax credits due out by Friday will result in fewer vehicles getting full or partial credits, a U.S. official told Reuters.

In December, Treasury decided not to issue the proposed guidance on battery sourcing rules until March, effectively giving some EVs not meeting new requirements a few months of eligibility in 2023 before the battery requirements take effect.

The Biden administration believes that over time the tax credit will result in more EVs sold as automakers revamp supply chains to meet critical mineral and battery component rules, the official said.