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President Biden's plan for stringent sourcing requirements in his expanded consumer EV tax credit aims to promote certainty — but it leaves room for China-linked vehicles to be left out in the future.

Why it matters: The new details released Friday mean fewer electric vehicles will likely qualify for the credit, but they might help confused companies and consumers. 

Driving the news: The Treasury Department released eligibility rules for the expanded $7,500 consumer EV tax credit in the Inflation Reduction Act.

They're complicated, but show how the government will treat a requirement that half the credit goes to cars with North American battery parts. 

They also deal with the other half, which mandates that vehicles use battery minerals from the U.S. or a free trade agreement partner. Minerals recycled in North America are also allowed. 

Treasury is using a definition of "free-trade agreement" that may offer auto and battery companies flexibility for minerals via future trade deals. Only 20 countries have comprehensive free trade agreements (plus a new minerals-centric one with Japan).

Both mandates start with low content percentages that rise significantly in the succeeding years.

The department will look for companies to certify they are tracking supply chains and following rules.

Yes, but: The guidance will provide industry clarity ... with a fat asterisk.

EVs aren't supposed to qualify if they're made with parts or minerals from a "foreign entity of concern," a term that other agencies recently said could apply to firms tied to China and Russia. 

But Treasury has yet to define the term. Attorneys believe there could be a wide range of potential interpretations, including a broad read that would limit lots of China-linked supplies. 

That definition will be released at a later unspecified date, per Treasury.

What they're saying: The White House sees this step as one more toward boosting a domestic EV manufacturing industry.

A senior administration official acknowledged Thursday this will likely restrain the number of vehicles that qualify in the short term.

However, the official said the administration thinks over the long term, the incentives will mean more electric vehicles built in the United States.

What we're watching: A potential lawsuit from Sen. Joe Manchin (D-W.Va.), who wanted tight EV sourcing rules in exchange for a "yes" vote on the IRA. 

Manchin said in a statement: "Yet again — the guidance released by the Department of Treasury completely ignores the intent of the Inflation Reduction Act." 

Biden EV tax credit guidance leaves uncertainty on China

It aims to promote certainty, but it leaves room for China-linked vehicles to be left out in the future.

A Ford F-150 Lightning on a production line in Dearborn, Mich. Photo: Emily Elconin/Bloomberg via Getty Images

Electric vehicles

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

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Tesla has agreed to make part of its extensive charging network available to drivers of other brands, the White House said Wednesday.

Driving the news: The company will make at least 7,500 chargers nationwide available by the end of next year, per a White House summary.

At least 3,500 new and existing open-access chargers will be on highway corridors to "expand freedom of travel for all EVs."

Others will be at spots like "hotels and restaurants in urban and rural locations."

Why it matters: The move by the country's dominant EV player will help expand what remains limited national access to public charging.

Drivers' confidence they can find charging is important for speeding up the transition to EVs, which remain a small but growing share of sales.

The intrigue: Tesla's agreement follows "intense lobbying from the Biden administration," the Washington Post reports.

"The upgrades will allow Tesla to qualify for federal dollars" under the administration’s plans to help the country have a national network of 500,000 chargers by 2030, per Politico.

Zoom in: The chargers Tesla will open up to other brands include supercharger stations near highways and other locations such as hotels and restaurants.

The company will more than double its network of superchargers, which are manufactured in Buffalo, New York.

Catch up fast: The news came in a wider set of White House announcements about efforts to boost charging.

They include final Transportation Department standards for chargers built using billions of federal dollars made available under the bipartisan infrastructure law.

Go deeper: The electric car revolution hinges on equitable, affordable charging

 Editor's note: This is a developing story. Please check back for updates.

The electric car revolution hinges on equitable, affordable charging

Tesla will open charging network to other EVs

The company will make at least 7,500 chargers nationwide available by the end of next year.

A Tesla, Inc. electric vehicle charges at supercharger location in Hawthorne, California.

A Tesla car charges at supercharger location in Hawthorne, Calif. Photo: Patrick T. Fallon/AFP via Getty Images

Tesla

Economy & Business

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

There's been a steady drumbeat of announcements from mayors about their plans to blanket their cities with electric vehicle (EV) charging stations — and to keep equity considerations front and center when choosing sites.

The big picture: Obstacles are plentiful — from the price of urban real estate to outdated zoning rules — but momentum is high.

"There's a sense of urgency," Denver Mayor Michael Hancock tells Axios. "We know we've got to get this infrastructure built out."

Why it matters: Ubiquitous coverage could coax more city dwellers to buy EVs, helping reduce vehicle emissions.

The (stated) emphasis on placing chargers in low- and moderate-income neighborhoods could improve access not just for everyday drivers, but also for rideshare and livery workers.

Driving the news: Cities are attacking the charging-station shortage from many different angles, taking a creative patchwork of approaches.

They're passing new building codes and zoning rules to coax — or force — developers to install rapid-charging stations (or at least reserve space for them).

They're expediting the often-slow permitting process for charging-station applicants. 

They're working with car companies (like GM and Hertz) and charging station purveyors (like EVgo and Volta) to add public chargers at minimal cost to taxpayers.

They're leading by example, converting municipal fleets to electric power.

Where it stands: California cities like Los Angeles, San Diego, Irvine, San Jose and San Francisco are among the leaders in the number of charging stations per capita.

Atlanta, Austin, Kansas City (Missouri), Seattle and Boston are also out in front.

How it works: Building a charger network is a complex and multifaceted process that requires local adaptations. 

Los Angeles has been attaching EV charging stations to streetlights — a boon to renters. 

Seattle is installing curbside chargers, also aimed at renters.

Denver partnered with Hertz to jump-start the build-out of neighborhood charging stations.

San Diego is experimenting with solar power to charge its own EV fleet. 

Hoboken, N.J. has a deal with Volta (which was just purchased by Shell) to install charging stalls — at no cost to the city — that can display revenue-generating digital advertising.

Tucson is among the growing list of cities that require certain new businesses and multi-family dwellings to provide charging stations in their parking lots.

Yes, but: Progress is uneven, and perception sometimes lags reality. 

"There's lots going on across the country, but it can seem like a different reality, depending on what city you're in," says Alexia Melendez Martineau, policy manager at Plug In America, a nonprofit that promotes EV use.

Cities are focused on "rolling out these stations in an equitable manner, to try to rectify some of the historical mistakes" they've made, she tells Axios.

But "the lion's share of the work is still left to be done."

What they're saying: "Frankly, the state of the industry is a little bit better than people think," Jonathan Levy, chief commercial officer at charging provider EVgo, tells Axios. "We just have a lot more work to do."

"One of the common things that I hear is, 'Oh, there's no charging where I am,'" Levy said. "And I often say, 'well, why don't we look at the PlugShare app and see what charging is near you?'"

Reality check: Cities everywhere, particularly the most densely populated, face formidable hurdles, from recalcitrant landlords and antique infrastructure to physical constraints — like a shortage of driveways, curb space and parking lots.

Retrofits for EV wiring can be expensive, particularly in multi-family buildings, and urban utilities tend to be backed up with projects.

Most places don't have EV-specific zoning regulations — and local boards can be persnickety. 

Many public charging stations are poorly maintained or simply don't work, per a study released by J.D. Power in August.

Follow the money: Under the 2021 infrastructure law, states are getting $5 billion in federal incentives to build out a national charging network, while cities can apply for a share of $2.5 billion in competitive grants.

Those grants prioritize expanding access in underserved areas.

An organization called Climate Mayors has formed an Electric Vehicle Purchasing Collaborative to pool officials' buying power when bidding on resources of all kinds. 

"There’s a lot of money on the table right now, and ample opportunity to improve the quality of life for communities across the country," says Melendez Martineau of Plug In America.

The bottom line: Despite ambitious promises and a spate of new partnerships and pledges, these are still early days in the actual placement of public, operational fast-charging stations in U.S. cities — particularly in places where they can be used by people who can't afford Teslas.

Cities race to add EV charging stations — pronto

Los Angeles — a leader — attaches EV charging stations to streetlights.

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Cities

Whats Next

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Understanding how charging works is important for anyone who drives an electric vehicle (EV), but the process breeds anxiety for many. We're here to help. 

Why it matters: Plugs vary (depending on the car) and chargers have different power levels (which affects charging time). 

It can all be overwhelming, and education is an important step toward charging equity.

Of note: Teslas use a proprietary network, which makes charging pretty straightforward. The tips below are for non-Tesla drivers.

Charging is easiest if you can top off at home and you don't drive long distances.

Just plug the cord that comes with your car into a standard 120-volt outlet overnight and you'll get about 40 miles of range — enough for most daily driving.

Recharging from empty this way, however, would take at least a day and a half.

A better option for EV owners: Install a so-called Level 2 charger at home.

It uses the same 240-volt household connection as your clothes dryer. 

You might need some electrical prep work first. Expect to pay anywhere from $500 to several thousand dollars.

Your electric bill will go up, of course. But at least you won't need to buy gas. 

By the numbers: The average price for residential electricity is about 16 cents per kWh. It's higher in some places, such as the Northeast and Hawaii.

A full Level 2 recharge takes around 6-8 hours, and adds about $10 to your home's electric bill.

Level 2 chargers are also available at many offices, shopping centers and hotels — often as a free courtesy.

Think of these as a place to top off your car's battery as you would your phone when a plug is available. 

On a road trip, you're going to want to charge a lot faster — but you'll need to do some planning.

Networks with fast chargers, like Electrify America, EVGo, ChargePoint and Blink, are proliferating — but they're still not as common as gas stations.

These chargers can get you back on the road in 20-40 minutes, depending on your car and the charger's maximum output.

Some chargers max out at 24 kilowatts, while newer models are capable of up to 150 or even 350 kilowatts. The higher the power, the faster the charging speed — in theory, at least.

Reality check: Even the industry's fastest-charging cars, such as the Hyundai Ioniq 5 and Kia EV6, rarely charge at their maximum possible speed.

The status of your battery and whether other drivers are using the same charging station can cause slowdowns.

EVs sometimes limit their power intake to avoid frying their batteries.

The bottom line: Set your expectations low and you won't be disappointed.

Go deeper: Pack up the electric car, honey! We're hitting the road

What electric car buyers need to know about charging

Axios' quick guide to understanding electric vehicle (EV) charging.

Illustration of a hand holding an EV charger. 

The Biden administration effectively banned mining across a swath of land in northern Minnesota, putting a roadblock in front of the Twin Metals mining project for at least two decades.

Why it matters: House Republicans are eviscerating the move’s timing because it happened just after Biden struck a deal for minerals from Africa and suggested they’ll zero in on his efforts to support mining overseas. 

What’s happening: The Interior Department thrilled environmentalists and indigenous communities by withdrawing roughly 225,000 acres near the Boundary Waters Canoe Area Wilderness from mining practices for 20 years. 

Twin Metals sought to use this area for its proposed copper-nickel mine. The company, which sued the Biden administration for canceling its mineral leases, responded by saying in a statement that it is "committed to enforcing" its "rights." 

"With an eye toward protecting this special place for future generations, I have made this decision using the best-available science and extensive public input,” Interior Secretary Deb Haaland said in a news release. 

What they’re saying: Rep. Pete Stauber — the Republican who represents where Twin Metals would be built — responded by aiming fire at a mineral supply deal Biden inked in December with the Democratic Republic of the Congo and Zambia. 

"America needs to develop our vast mineral wealth, right here at home, with high-wage, union protected jobs instead of continuing to send American taxpayer dollars to countries like the Congo that use child slave labor," Stauber said in a statement. 

The bottom line: Northern Minnesota is especially wet and rich in biodiversity, making it a difficult place to mine, but a ban right now will unquestionably have political costs. 

Republicans will say Biden is halting U.S. mining jobs while supporting miners in other countries. 

This arrives just as House Republicans plot to throw bombs at Biden’s efforts to finance mines overseas with a State Department-led initiative. Read Jael’s coverage of that program here. 

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Biden bans mining in part of northern Minnesota

Northern Minnesota is a fragile place to mine, but Biden's ban has political costs.

Illustration of a close up of the top of an alarm clock with the bell hammer replaced with a pick axe. 

Mining

Tesla's future sales could help answer a defining question of the social media age: how much Twitter reflects the real world versus distorting it.

The big picture: Elon Musk's Twitter purchase in October is amplifying his rightward shift. Think support for Ron DeSantis, belittling trans people and more. 

His politics enrage online progressives, and there's evidence of people vowing not to buy Teslas.

Driving the news: Tesla yesterday reported 405,278 deliveries in Q4, a record that nonetheless fell short of analysts' expectations. 

But it's an incomplete snapshot of buyer sentiment. Musk's Twitter purchase only closed in late October, and also the numbers partially reflect orders before Q4.

The intrigue: It's hard to know how much the online drama will spill into consumer behavior going forward.

It's a cousin of a question that has roiled Democrats: whether strategists confuse Twitter sentiment with the party's wider electorate.

Threat level: Signs of consumers abandoning Tesla are largely anecdotal, though a mid-November Morning Consult survey found erosion of Tesla's favorability among Democrats.

"If the Tesla brand becomes increasingly right-leaning, that could put it out of alignment with core electric vehicle purchasing profiles," it notes.

The intrigue: Brand image is just one thing worrying Tesla investors as the share price has plummeted.

There are also concerns about Twitter distracting Musk, and wider economic headwinds, to name just two.

What they're saying: "We believe early signs of any brand deterioration related to Musk could be seen in the 4Q numbers, but ultimately 2023 will be the barometer year for Tesla," Wedbush Securities analyst Dan Ives said via email.

"Musk opened up the political firestorm and that’s not a good thing when selling to the masses."

Yes, but: Isolating the effect of Musk's politics on Tesla sales is tricky. 

"Among the challenges to defining shifts in Tesla demand is the larger car-buying atmosphere, where demand is universally dropping," iSeeCars.com executive analyst Karl Brauer said via email.

He also said that while Musk may turn off some buyers, there may be new interest from people "previously apathetic" about Musk and Tesla or unaware of him.

The real-world effect of Elon Musk's online drama

Elon Musk's political statements could alienate potential Tesla buyers.

Illustration of the twitter logo hanging from a rear view mirror. 

Elon Musk

The Biden administration is looking at funding roughly a dozen mineral projects overseas in a bid for more resources used in lower-carbon technologies.

Why it matters: Supporting more mining overseas could ease a raw material squeeze hurting electric vehicles, but it could also have a side effect: giving Biden’s foes fodder against him for rejecting mines at home. 

Driving the news: Jose Fernandez, Under Secretary of State for Economic Growth, Energy, and the Environment, said in an interview the administration is mulling “around a dozen” mineral projects around the world for potential federal financing. 

It’s one way the administration is responding to the rapidly rising demand for EV battery minerals like lithium — an issue that's raising prices. 

How it works: This money may be distributed through the Mineral Security Partnership, a Biden program leveraging international relations to address U.S. mineral supply concerns. 

The partnership includes Australia, Canada, Finland, France, Germany, Japan, South Korea, the United Kingdom and the European Commission. 

Part of its work will include mineral projects around the world “potentially receiv[ing] financing from the U.S. and/or other MSP partners,” a State Department spokesperson confirmed. 

This includes mining, mineral processing and recycling projects. 

Federal funding will be available via two agencies: the Export-Import Bank and the Development Finance Corporation, which is already funding a nickel mining project in Brazil. 

The big picture: Unless something drastic changes, the world would need to mine a lot more to rid itself of fossil fuels. 

EVs and solar panels rely on unique metals produced in only a few places. Most of the supply is currently controlled by China. 

Tech innovation and recycling won’t be enough to resolve this — at least not as fast as scientists recommend we cut carbon emissions. 

Some of these minerals, like graphite, are hard to find in the United States, per E&E News. 

What they’re saying: Fernandez said the program "is what we believe is the best way to address" the problem that "we're going to need an exponential amount of rare earths and critical minerals, above what we have today." 

The program's success will mean “raising the level of investment and [doing] it in a way that benefits these countries and would be sustainable.” 

Of note: The partnership is talking with American carmakers, including Ford, General Motors, Rivian and Tesla. 

They’re also talking to at least two U.S. lithium mining firms, Albemarle and Piedmont Lithium. 

These companies are members of a State Department “clean energy resources” committee formed in March that Fernandez said is involved with the partnership. 

Fernandez declined to specify companies the partnership is considering for potential financial support.

The other side: Republicans aren’t huge fans of considering the overseas mineral funding at a time when mining projects are facing hurdles at home. 

Conservatives love to mention that Biden rejected and stalled some of the nation’s largest mining projects. Some mines were rejected for pollution concerns. 

Rep. Bruce Westerman, the incoming chair of the House Natural Resources Committee, told Jael “we need to be forming alliances with our friends around the world,” but directly financing foreign projects was “horrific.” 

The State Department responded to Westerman’s remarks with a statement asserting it supports an “all-of-the-above approach” to minerals that includes backing for “more secure domestic supply chain projects.”

What’s next: Expect House Republicans to scrutinize the program next year. 

“As soon as we get into the majority, we will be getting pretty deep into it,” said a GOP aide to the House Foreign Affairs Committee. 

For more content like this, join the waitlist for Axios Pro Energy Policy, launching next year.

Editor's note: This story has been updated to note that Fernandez declined to name the companies the partnership is considering.

Exclusive: Behind Biden's overseas mining funding

EVs need lots of minerals. Biden is trying to deal with that.

Photo illustration of Biden in a construction hat. 

Photo illustration: Aïda Amer/Axios. Photo Mark Makela/Getty Images

Biden administration

After decades of attempts to power cars with energy from the sun, the solar automotive age might finally be upon us.

Why it matters: With climate change accelerating and high gas prices squeezing consumers' budgets, the notion of filling up with free, clean solar energy is certainly enticing.

The catch: The amount of solar energy that can actually be captured by solar panels on a car's roof is limited, which is why the tech has yet to take off.

Coming soon: A $25,000 solar-powered electric SUV

Sono Motors found a way to build solar cells into a car's body panels.