Biden’s Inflation Reduction Act is going to spike EV prices: Regulations under the Inflation Reduction Act to begin the immediate manufacture of EV components including chargers in US-based production plants are drawing concern from automakers, industry sources tell Reuters. The US currently lacks the domestic capacity to engage in full fledged EV production in line with the IRA’s targets, especially on EV chargers, the newswire notes, adding that industry players worry strict enforcement of the Act would slow the rollout of EVs and hike production costs.

An unrealistic timeline: Moving production from foreign markets takes as long as 18 months and immediate enforcement of the bill to relocate manufacturing to the US could drive EV costs up by 25-30%, co-founder of EV chargers manufacturer XCharge Aatish Patel tells Reuters. A mandate to source 55% of EV costs in the US has been postponed from its 2023 deadline to July 2024, according to a White House statement. The EV industry expects more deferrals in other terms to follow for the IRA’s EV production targets to be met, Reuters notes.

Americans are eager to switch to EVs: 34% of US respondents to a recent poll by Reuters and French market research and consulting firm Ipsos said they would consider purchasing electric vehicles for their next car. The Biden-Harris administration has a target to have hybrid and EV models comprise half of all new domestic car sales by 2030.

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