BYD will sell more battery electric cars in 2023 than Tesla. This goal is within reach thanks to a strong performance in China – the world’s largest car market – and aggressive international expansion. So why hasn’t BYD announced its plans for the U.S.? According to a fantastic article from Reuters, the explanation is the Inflation Reduction Act (IRA).
When the regulation established a new federal tax credit, it imposed some criteria for eligibility, including local production of batteries, the raw materials they need, and other EV components. With most refining coming from China, even CATL froze plans for factories in the U.S. and Mexico because material sourcing would drive costs up.
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