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The Reducing Inflation Act is having an impact on U.S. auto manufacturing. Less than 2 months after the passage, there has been a lot of news about the construction of new battery factories in the United States, new lithium mining agreements, and construction of new factories in the United States.
Audi considers U.S. factory to produce electric cars
Audi is seriously considering whether it should open a production plant in the United States. Audi's only North American factory is currently in San Jose Chiapa, Mexico, where it builds the Q5 crossover, and a new line on the U.S.-Mexico border could be added later, with a final decision likely to be made in early 2023.
Volkswagen has expanded its factories in the United States, and ID.4 can get incentives from the Act
Volkswagen currently manufactures the ID.4 battery-electric SUV at its newly expanded factory in Chattanooga, Tennessee. This makes it the only Volkswagen Group car currently eligible for the incentives offered by the Inflation Reduction Act.
In addition, the Volkswagen Group recently signed an agreement with the Canadian government to procure minerals mined in the country for future battery production, which could signal a further commitment to electric vehicle production in North America
The Act pushes Tesla Semi to market faster
The clean vehicle tax credit of up to $7,500 eligible for new car buyers and up to $40,000 per truck for more expensive commercial vehicles will drive adoption of electric medium- and heavy-duty trucks, which will be a huge factor in the adoption of electric medium and heavy-duty trucks. It is good news for Tesla.
The Tesla Semi is finally in production five years after its initial release, with the first Tesla Semi expected to be delivered in about six weeks, with the first shipments to PepsiCo's two California plants in December.