US EV tax credit expiration reshapes electric vehicle market

US EV

US EV tax credit expiration after 15 years is reshaping vehicle affordability and demand across the US auto market. The US EV tax credit supported sales of models like the Tesla Model Y and Chevrolet Equinox EV. Now the US EV tax credit has ended, leaving buyers with higher upfront costs and manufacturers with greater policy uncertainty.

US EV tax credit expiration driven by politics and fiscal push

The US EV tax credit began in 2008 as a bipartisan tool to jump-start early EV adoption. It later expanded under the Inflation Reduction Act, which tied eligibility to US-made vehicles and domestic supply chains. However, Republican lawmakers and oil interests increasingly opposed the subsidy, arguing it distorted markets and threatened future gasoline demand.

As a result, the latest tax and energy law under president Donald Trump removed the incentive from 30 September. Lawmakers framed the US EV tax credit expiration as a way to save more than $190bn over ten years. The move reflects a broader rollback of climate-linked support measures, including plans to repeal greenhouse gas limits on cars and trucks. This policy reversal now clashes with long-term investment cycles for automakers and battery producers.

EV affordability and US supply chains face fresh headwinds

The end of the US EV tax credit comes while EVs still cost more than conventional cars. Recent data show US EVs carry an average price premium of around $8,000 over combustion models. Without the $7,500 federal incentive, many mass-market buyers lose a key financial lever that helped close the price gap. This will likely slow new orders, particularly in middle-income segments and fleet purchases.

Meanwhile, manufacturers warn that the loss of the credit weakens the business case for US-based EV and battery plants. The revised credit had pushed automakers to localise assembly and critical mineral sourcing inside the US or allied countries. Its removal undercuts one of the strongest pull factors for building gigafactories, cathode plants and related supply chain assets on US soil. Industry groups argue this shift could hand competitive advantage back to regions with more stable policy support.

State-level climate policy will now carry more weight in the US EV landscape. California and other Democratic-led states plan to maintain strict tailpipe standards and invest heavily in charging infrastructure. However, even ambitious state measures cannot fully compensate for the vanished federal incentive. Automakers must therefore navigate a patchwork of regional rules while recalibrating sales forecasts and capital plans in a post-credit market.

The Metalnomist Commentary

The US EV tax credit expiration exposes the tension between long-term industrial strategy and short-term political swings. For metals and battery supply chains, the key risk is stop-start demand that complicates investment in lithium, nickel and cathode capacity. Unless policy clarity returns, the US could cede ground to regions where EV incentives and climate regulations move in a steadier direction.

US EV Charger Domestic Content Rule Could Reshape Charging Supply Chains

US, EV Charger

US EV charger domestic content rule could significantly reshape the charging equipment market. The US Department of Transportation has proposed raising domestic content requirements from 55pc to 100pc for federally funded EV chargers. The proposal would also end the Buy America public interest waiver introduced in 2023. As a result, the US EV charger domestic content rule could force a major reset in sourcing, assembly, and project execution.

This matters because federally funded EV chargers sit at the center of public charging expansion in the United States. If the proposal is adopted, projects in the acquisition or installation phase would need final assembly in the US and fully domestic components. That would sharply tighten compliance expectations. Therefore, the US EV charger domestic content rule would go well beyond a minor procurement change.

The proposal also arrives against a weak deployment backdrop. The Biden administration allocated $7.5bn in 2021 for EV charging stations. Yet only eight operational charging stations had been installed by June 2024. Consequently, the new rule raises a core policy question: will stricter domestic sourcing accelerate industrial buildout or slow charger deployment further?

Buy America EV Chargers Policy Now Favors Full Domestic Sourcing

Buy America EV chargers policy is clearly moving toward a far stricter interpretation. The earlier waiver allowed federally backed projects to move forward under more flexible sourcing rules. Removing that waiver would end that transition path. As a result, manufacturers and project developers would face a much narrower compliance window.

This shift could support domestic manufacturing if suppliers can scale quickly enough. US-based charger assembly, components, and sub-systems could all benefit from stronger policy protection. However, the transition may be difficult for companies still relying on mixed international supply chains. Therefore, Buy America EV chargers policy may reward a small group of prepared suppliers first.

The biggest challenge may be component depth. Final assembly in the US is one requirement. Full US-made EV charger components is a much harder threshold. That means the rule could expose weak points in power electronics, connectors, enclosures, and other charging hardware inputs. Meanwhile, compliance verification may become more complex for project owners.

Federally Funded EV Chargers Could Face a New Trade-Off

Federally funded EV chargers may now face a sharper trade-off between industrial policy and rollout speed. A 100pc domestic content rule can strengthen US manufacturing intent. But it can also reduce supplier flexibility and raise procurement friction. As a result, charger deployment timelines may face new pressure during the transition.

That trade-off matters because the current buildout has already moved slowly. Public charging expansion depends not only on funding, but also on permitting, grid connection, equipment supply, and contractor readiness. A stricter sourcing rule adds one more layer to that process. Therefore, federally funded EV chargers may become a test case for how far domestic content policy can go without harming project delivery.

The broader industrial signal is still important. Washington appears to be treating EV charging infrastructure as a strategic manufacturing category, not only a transport category. That places chargers closer to the wider US reshoring agenda. Consequently, the US EV charger domestic content rule could influence how future clean infrastructure policies are designed.

The Metalnomist Commentary

This proposal matters because it turns EV chargers into a more explicit industrial policy tool. The US is no longer only trying to fund charging growth. It is trying to localize the entire equipment chain behind that growth. If domestic suppliers cannot scale fast enough, deployment may slow before it strengthens.

Tesla and Rivian EV Deliveries Rise as US Tax Credit Expires

Tesla

Tesla and Rivian EV deliveries surged in the third quarter as US buyers raced to secure incentives. The jump in Tesla and Rivian EV deliveries highlights how strongly policy deadlines can pull demand forward. As a result, automakers now face a more uncertain sales outlook in a post-incentive US EV market.

Tesla and Rivian EV deliveries both increased, but their strategic positions differ. Tesla delivered more than 497,000 vehicles in the quarter, up by 7pc year on year. Meanwhile, Rivian delivered 13,201 vehicles, marking a 32pc increase from a year earlier. This divergence shows that Tesla and Rivian EV deliveries are growing from very different scales, with Tesla defending volume leadership and Rivian still in ramp-up mode.

However, much of the strength in Tesla and Rivian EV deliveries reflects a rush ahead of policy change. US consumers accelerated purchases before the $7,500 federal EV tax credit expired on 30 September. This incentive had supported EV affordability and narrowed the cost gap with combustion models. Now that the tax credit has ended, manufacturers must rely more on price cuts, financing offers and brand strength.

Energy storage and competition reshape the US EV landscape

Tesla’s third quarter also underlined its shift into broader clean-energy infrastructure. The company deployed 12.5GWh of energy storage products, an 81pc increase from the third quarter of 2024. These storage deployments support grid stability and fast-charging networks, and they diversify earnings beyond vehicle sales. As a result, Tesla’s integrated model may cushion the impact of any slowdown in pure EV demand.

Competition around Tesla and Rivian EV deliveries is intensifying as legacy automakers scale production. General Motors reported a 107pc surge in EV deliveries to 66,501 units in the third quarter. GM expects sales to normalise in the fourth quarter, once the pre-expiry demand bulge passes. Therefore, US EV market growth will increasingly depend on sustained consumer confidence rather than one-off policy deadlines.

Rivian trims outlook as policy tailwinds fade

Rivian’s revised guidance shows the limits of relying on one strong quarter. The company narrowed its full-year delivery outlook to 41,500–43,500 vehicles. The upper end is 5pc lower than its August guidance, signalling caution on demand and ramp-up execution. Investors will watch whether Rivian can manage costs and scale production while incentives fall away.

As a result, Tesla and Rivian EV deliveries now sit at the intersection of policy, pricing and competition. The next test will be how both brands perform without the powerful pull of a federal tax credit. Their ability to hold margins, maintain growth and expand product lines will shape upstream demand for batteries, critical minerals and low-carbon materials.

The Metalnomist Commentary

The spike in Tesla and Rivian EV deliveries illustrates how sharply fiscal incentives can front-load EV demand. With the US tax credit gone, supply-chain planners from cathode producers to aluminium and copper suppliers should expect more volatile order cycles. Over the medium term, winners in the EV race will be those automakers that pair cost discipline with secure access to critical materials, not just headline delivery growth.

Volkswagen ID.4 Production Halt Shows US EV Demand Pressure

Volkswagen EV

Volkswagen ID.4 production in the US will end as the German automaker shifts its Chattanooga, Tennessee, plant toward higher-volume internal combustion vehicle output. The decision reflects weaker electric vehicle demand in the US and the need to protect North American manufacturing utilisation.

Volkswagen said the EV market continues to challenge the industry and requires measured decisions. The company will stop producing the ID.4 at Chattanooga and begin assembling the all-new second-generation Atlas from mid-April 2026.

Volkswagen ID.4 production has been strategically important because the model is the company’s top-selling EV in the US. However, the ID.4 sold 22,373 units in 2025, far below the Atlas, which sold 71,044 units and remained Volkswagen’s second-best-selling model for the past three years.

The decision shows how automakers are adjusting production footprints as EV adoption slows. US EV sales fell by 27% year on year to 216,300 units in the first quarter, creating pressure on manufacturers to rebalance plant capacity, dealer inventory and product planning.

Chattanooga Shift Prioritises Higher-Volume SUV Demand

The Chattanooga plant will now focus on the second-generation Atlas, a three-row sport utility vehicle with much stronger US sales momentum. This gives Volkswagen a clearer volume base in a market where larger SUVs remain commercially attractive.

The move is not a full retreat from the ID.4. Volkswagen said model-year 2026 ID.4 vehicles will remain available through current inventory, supporting US demand into 2027. The company also plans a future version of the ID.4 for North America, although details have not yet been disclosed.

Still, the production shift is significant. Automakers rarely remove capacity from a model unless demand, margin or manufacturing strategy has changed. In this case, Volkswagen appears to be choosing a higher-volume SUV platform over a slower-moving EV in the near term.

This reflects a wider industry trend. EV demand has become more uneven as consumers respond to vehicle prices, charging access, policy uncertainty and changing incentive structures. Automakers now need more flexible production strategies rather than relying on straight-line EV growth forecasts.

EV Slowdown Could Weigh on Battery Materials Demand

Volkswagen ID.4 production changes also matter for the battery materials supply chain. Lower EV output can reduce near-term demand for lithium, nickel, graphite, manganese, copper, aluminium and rare earth magnet materials linked to electric drivetrains and battery systems.

The effect will not come from Volkswagen alone. The bigger issue is that several automakers are reassessing EV production rates in response to slower consumer adoption. If this pattern continues, battery material demand growth may become more volatile than earlier industry forecasts suggested.

For suppliers, the shift creates a timing problem. Many battery, cathode, anode and recycling investments were planned around rapid EV market expansion. Slower model-level output can leave material producers exposed to weaker offtake, lower utilisation and price pressure.

At the same time, Volkswagen’s decision does not eliminate long-term EV demand. It shows that the transition may move in phases, with automakers balancing EVs, hybrids and combustion vehicles depending on regional demand. North America may therefore remain a more mixed powertrain market than China or parts of Europe.

The Metalnomist Commentary

Volkswagen’s ID.4 decision shows that EV strategy is now being tested by real factory economics. The energy transition is still moving forward, but automakers will increasingly prioritise models that protect utilisation, margins and supply-chain stability.

US New Tariffs Could Disrupt China's Non-Exempt Metals Exports

China Tariffs

New tariffs on lithium, rare earth magnets, and more could affect China's metal exports to the US.

The United States has announced significant new tariffs on Chinese imports, with a notable focus on metals. While many non-ferrous metals and ferro-alloys have been exempted, some crucial exports from China, like lithium, rare earth magnets, and lithium-ion batteries, will face substantial increases in tariff rates. These changes are set to have a lasting impact on the trade between the US and China, especially in the energy storage and electric vehicle (EV) sectors.

High Tariffs on Lithium-Ion Batteries and Energy Storage

As of April 9, the US will implement an 82.4% tariff on electric vehicle (EV) power batteries and a 57.4% tariff on non-EV lithium-ion batteries from China. This substantial hike in tariffs will make Chinese-made batteries far more expensive and may eliminate the possibility of Chinese EV power batteries entering the US market. US consumers will likely absorb these costs, potentially leading to inflation in the US battery industry, especially in the energy storage sector.

China’s lithium-ion battery exports to the US had already been on the rise, with a 59% increase in exports during the first two months of the year. However, these new tariffs are expected to curb the growth of China's battery exports to the US and negatively affect lithium feedstock prices, which are currently at a four-year low.

Impact on Rare Earth Magnets

Rare earth magnets are another key area of concern, as these products were not exempted from the new tariffs. Despite some uncertainty about the exact tariff implementation, producers in China are anxious about the potential 54% tariff on rare earth magnets. China remains the dominant supplier of rare earth magnets globally, and while the US does have some alternatives, they are mostly focused on military applications with significantly higher prices. This makes it unlikely that the US can fully escape its dependence on China, especially for civilian applications.

China’s exports of rare earth magnets to the US in 2022 accounted for 12% of its total exports, and while tariffs could reduce this figure, China’s competitive pricing in the civil sector ensures its continued dominance in the global market.

Copper, Aluminium, and Hafnium: Other Affected Metals

While copper and aluminium are exempt from this latest round of tariffs, the copper industry remains on edge. US authorities are investigating the potential security implications of copper imports, and there’s speculation that a tariff may be imposed in the future. As for aluminium, Chinese exports are already subject to a steep 70% tariff, which is expected to discourage further aluminium exports to the US, pushing Chinese suppliers to seek alternative markets.

Hafnium, a critical metal used in aerospace applications, will also face a significant tariff hike, moving from 34% to 79%. This change could prompt US buyers to source hafnium from other regions, like Rotterdam, where the tariff is considerably lower.

Conclusion

The new US tariffs on Chinese metals exports are set to reshape the global metals market, particularly for lithium-ion batteries, rare earth magnets, and hafnium. While some sectors, like copper and aluminium, may have avoided immediate tariff hikes, long-term implications for the industry remain uncertain. The tariff increase on key metal exports from China to the US is expected to alter supply chains and increase costs for US consumers, especially in the EV and energy storage markets.

EV demand low into early 2026 forces GM to reset its EV roadmap

GM

EV demand low into early 2026 is forcing GM to reset its electrification roadmap. The company now expects a sharp slowdown in US EV demand from October, with weakness extending into early 2026. As a result, GM EV strategy will focus less on volume and more on profitability, cost reduction and flexible product planning while EV demand low into early 2026 reshapes investment priorities.

EV demand low into early 2026 shifts focus from growth to profitability

GM is refocusing its EV portfolio on returns as EV demand low into early 2026 erodes earlier growth assumptions. Management will target lower material costs through larger battery modules and new chemistries, seeking better pack economics across upcoming models. This shift shows how GM EV strategy is moving from pure scale to margin protection in a cooling market.

However, the company still holds a meaningful EV position despite the slowdown. GM delivered more than 66,000 EVs in the US during the third quarter, capturing a 16.5pc market share. Even so, the $1.6bn charge tied to converting the Orion, Michigan plant back to internal combustion output signals a decisive retreat from some earlier EV capacity bets. GM will also end production of its BrightDrop electric delivery van after weaker than expected fleet demand.

Tariff exposure falls as GM doubles down on North American supply chains

Tariff relief and localisation are cushioning GM as EV demand low into early 2026 complicates planning. The company cut its 2025 tariff exposure by $500mn, now guiding to $3.5bn-4.5bn in potential duties. Recent tariff measures on some vehicle imports have had limited impact on GM because of years spent strengthening North American supply chains.

As a result, sourcing strategies have become a core pillar of GM EV strategy. Management highlighted investments in magnet supply and its stake in Lithium Americas as examples of upstream de-risking. These moves help secure critical materials for both EV and hybrid programs while limiting exposure to geopolitical shocks. Still, quarterly profit fell to $1.3bn from $3bn a year earlier, underlining how a softer EV ramp and restructuring costs weigh on near-term earnings.

The Metalnomist Commentary

GM’s reset shows that profitability is now the dominant theme in Western EV markets. For metals producers, slower EV growth into 2026 could delay some demand, but localisation of magnets, batteries and power electronics remains structurally bullish. Suppliers that can offer both competitive pricing and North American footprint will be best positioned as GM and peers rebalance their EV roadmaps.

Lithium Americas Thacker Pass project reshaped by US equity move

Lithium Americas

The Lithium Americas Thacker Pass project has entered a new phase as the US government links financing to direct equity. The Department of Energy (DOE) will take a 5pc stake in Lithium Americas and another 5pc in its joint venture with General Motors. This move reshapes risk sharing on the Lithium Americas Thacker Pass project and signals stronger US commitment to domestic lithium supply. As a result, the Lithium Americas Thacker Pass project now sits at the intersection of industrial policy, EV demand and capital markets.

US equity stake deepens support for Lithium Americas Thacker Pass project

The DOE has restructured its $2.26bn loan by adding equity warrants in Lithium Americas and its GM joint venture. This makes the US government not only a lender but also a partial owner of the Lithium Americas Thacker Pass project. LAC will draw an initial $435mn before the end of 2025, which will fund early construction and infrastructure. The joint venture structure remains intact, with Lithium Americas holding 62pc and operatorship and GM holding 38pc. This equity-linked design aligns incentives across government, miner and automaker, while anchoring long-term US battery material security.

The Thacker Pass development targets 160,000 t/yr of lithium carbonate across five phases. Each phase is planned at 40,000 t/yr, providing staged capacity that can track market demand. This phased approach reduces execution risk and gives lenders more confidence in the project ramp-up. It also lets the partners adjust capex timing if pricing or EV demand changes. For the DOE, the structure supports a scalable North American supply chain that can feed US gigafactories and reduce reliance on foreign lithium.

GM will also amend its offtake agreement to allow additional buyers into the portfolio. Under the existing terms, GM can take up to 100pc of Phase 1 and 38pc of total production for 20 years. The updated agreement will free some Phase 1 volumes for third-party offtake contracts. That shift reflects slower US EV adoption than previously expected and uncertainty after the expiry of key tax credits at the end of September. It also allows Lithium Americas to diversify its customer base and reduce single-buyer exposure.

Lithium Americas Thacker Pass project balances market risk and supply security

The Lithium Americas Thacker Pass project is now a test case for how policy-backed critical mineral projects manage demand cycles. On one hand, government equity and cheap debt lower financing costs and signal strong policy support. On the other, the partners must adapt to a softer EV sales trajectory and evolving battery chemistries. Allowing third-party offtake from early phases helps ensure plant utilisation and broader market participation. It also widens the strategic impact of Thacker Pass beyond a single OEM.

At the same time, the project remains central to US ambitions for a resilient battery supply chain. Domestic lithium carbonate output can reduce exposure to price spikes, export controls and shipping disruptions. The phased build-out allows careful monitoring of market conditions while keeping long-term capacity targets intact. If EV adoption reaccelerates later in the decade, Thacker Pass will already have a built foundation for further expansion.

The Metalnomist Commentary

The DOE’s equity stake turns Thacker Pass into a flagship example of industrial policy meeting market reality. The Lithium Americas Thacker Pass project gains financial strength and strategic backing, but must now prove it can thrive in a slower, more competitive EV landscape. For battery and automaker supply chains, the real story is optionality: diversified offtake and phased growth give this project room to adjust without losing strategic relevance.

GM Slows Ontario EV Van Production Amid U.S. Tariff Uncertainty

Ontario EV

BrightDrop EV Van Production to Pause Until October 2025

General Motors (GM) will halt and scale back production of its BrightDrop electric delivery van at its Ingersoll, Ontario plant. The company will initiate temporary layoffs on April 14, affecting nearly 500 workers, according to Canadian union Unifor.

GM plans a limited return to production in May, before a prolonged shutdown until October 2025. When operations resume, the plant will run a single production shift, significantly reducing workforce needs.

Retooling Plans Move Forward Despite Market Headwinds

During the downtime, GM will retool the Ontario facility to prepare for 2026 model-year commercial EV production. The company reported 274 BrightDrop van sales in Q1, up 7% year-over-year, showing modest EV delivery growth.

However, Unifor President Lana Payne criticized U.S. trade policies, citing Trump-era tariffs as barriers to investment stability. She warned that without stronger domestic support, Ontario’s EV production future remains fragile despite GM’s commitment.

U.S. Policy Turbulence Adds Pressure to Canada’s EV Industry

The slowdown highlights how protectionist U.S. policies and shifting EV strategies are reshaping North America's industrial landscape. Canadian facilities like Ingersoll face uncertainty as automakers reevaluate supply chains, tariffs, and long-term EV market access.

Unifor urged Canadian policymakers to boost EV sector resilience, warning that delays could weaken future battery and vehicle investments.

The Metalnomist Commentary

GM's EV production pause in Ontario reflects the volatility caused by geopolitical and trade tensions. While retooling shows long-term intent, the move also signals growing caution in the North American EV race. Without cohesive cross-border policy, industrial momentum risks stalling.

Trump Hints at Scaling Back US EV Targets

In a striking address at the Republican National Convention in Milwaukee, US presidential candidate Donald Trump vowed to roll back the country's electric vehicle (EV) targets on his first day in office. "I will end the electric vehicle mandate on day one," Trump declared, "thereby saving the US auto industry from complete obliteration, which is happening right now."

While the US does not have an official EV mandate, it appears Trump was referencing the sales targets set by the US Environmental Protection Agency (EPA). Last April, the EPA proposed measures to combat pollution from diesel and petrol-powered vehicles, aiming for a 60% market share for light-duty battery EV (BEV) sales by 2030, rising to 67% by 2032.

However, in March, the EPA revised its market share forecast for BEV sales to 56% from 67% by 2032, with plug-in hybrid EVs filling the projected sales gap. Trump also voiced concerns about the growing presence of Chinese EV manufacturers. He pointed out that the US EPA's targets have faced resistance from individual states, which can impose their own conflicting targets.

"Right now, as we speak, large factories are being built across the border in Mexico … they are being built by China to make cars and sell them in our country," Trump added, highlighting the threat posed by Chinese EV makers establishing factories abroad. "We're going to put a 100% tariff on every single [Chinese] car that comes across the line, and you're not going to be able to sell them," Trump stated on March 16.

The Biden administration recently announced tariff increases up to 102.5% on Chinese-made EVs, up from the 27.5% duties set by the Trump administration.

China's largest EV maker, BYD, has announced investments in EV production in Hungary, Thailand, Uzbekistan, Morocco, India, Turkey, Vietnam, and Cambodia, with a combined production capacity of over 1 million EVs per year.

US Treasury Proposes Expanded EV Charging Tax Credit

US EV

The US Department of the Treasury has proposed a new rule to clarify and expand the eligibility of electric vehicle (EV) charging infrastructure for a key tax credit under the Inflation Reduction Act (IRA). The rule, if enacted, could provide a significant boost to the nation’s EV charging network by incentivizing investment in charging ports.

Under the proposed changes, businesses would be able to claim the "30C" tax credit, which covers up to 30% of the installation costs — or up to $100,000 — for each individual charging port. This proposal marks a shift in the definition of “a single item of property,” offering greater clarity for project developers.

Impact on National EV Charging Goals

The Biden administration has set an ambitious goal to deploy at least 500,000 public EV charging ports by 2030, in line with its broader efforts to reduce US carbon emissions. Currently, there are 192,000 charging ports in operation across the country, with around 1,000 new ports being added each week. At this pace, the US is projected to meet its target by mid-2030. The proposed tax credit expansion could further accelerate this progress by making it more financially viable for businesses to invest in EV infrastructure, particularly in low-income and rural areas that are eligible for the credit.

The Treasury Department will accept public comments on the proposed rule for 60 days, and a public hearing may be scheduled if requested.

GM Invests $625 Million in US Thacker Pass Lithium Mine to Secure EV Supply Chain

Lithium Americas (LAC)

General Motors (GM) has made a significant investment in the Thacker Pass lithium mine, located in Nevada and owned by Lithium Americas (LAC). The automaker will inject $625 million into the project, acquiring a 38% stake, marking the largest investment in a lithium mining project by a US carmaker to date. This deal comes as part of a broader effort to strengthen the supply chain for electric vehicle (EV) materials, following a $2.3 billion loan commitment from the US Department of Energy to support Thacker Pass earlier this year.

Jeff Morrison, GM's senior vice-president of global purchasing and supply chain, emphasized the importance of this partnership: "We're pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain. Sourcing critical EV raw materials, like lithium, from suppliers in the US is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs."

The first phase of development at Thacker Pass will be backed by an initial cash infusion of $330 million from GM. This phase aims to produce 40,000 tonnes of lithium carbonate annually, all of which GM will secure through an offtake agreement. This supply is projected to be sufficient for approximately 800,000 electric vehicles, highlighting the scale and significance of this partnership in meeting future EV demand.

Recent lithium carbonate prices have shown some volatility, with rates declining to $9.30-9.60/kg CIF China from $9.50-9.80/kg as recorded on October 8.

The collaboration between GM and LAC underscores the growing importance of domestic lithium production for the US EV industry and the need for a stable supply chain for critical raw materials. As electric vehicles gain popularity, such strategic partnerships are crucial in ensuring sustainable growth and meeting market demand.

Toyota Expands EV Operations in China and the US with New Facilities

Toyota

Toyota, a leading Japanese manufacturer, is setting up a new electric vehicle (EV)

production facility in Shanghai, China. The company aims to strengthen its presence in the growing Chinese EV market by delivering electric vehicles (EVs) and EV batteries to local customers. At the same time, it will begin shipping EV batteries from its newly established North Carolina facility in the United States. These moves are part of Toyota’s broader strategy to boost global EV production, aligning with its goal to sell 1.5 million EVs by 2026.

New Shanghai Facility: Focusing on EVs and Batteries

The new plant in Shanghai will focus on the production of EV batteries as well as the new Lexus brand EVs. Toyota plans to manufacture 100,000 EV units after 2027, though it has not disclosed whether this production will include batteries for models other than the Lexus EVs. Interestingly, Toyota has decided to set up the new Shanghai firm as a wholly-owned subsidiary, a rare move for foreign automobile manufacturers, who typically partner with local companies in China. This suggests that Toyota is committed to delivering new energy vehicles (NEVs) to Chinese customers rapidly, with a strong focus on the domestic market.

North Carolina Facility: EV Battery Production Ramp-Up

Toyota is also investing heavily in its North Carolina facility, which will start delivering EV batteries from April. This facility, with an investment of approximately $14 billion, will feature 10 production lines for batteries catering to EVs and plug-in hybrid electric vehicles (PHEVs), alongside four production lines dedicated to hybrid vehicle batteries. While Toyota has not disclosed the specific production volume for its North Carolina plant, this significant investment underscores its commitment to becoming a major player in the global EV market.

Toyota's EV Sales Strategy and Challenges

Despite these expansions, Toyota's global EV sales remain sluggish, with the company revising its sales forecast downward for the 2024-25 fiscal year. The revised outlook predicts sales of 142,000 EVs and 154,000 PHEVs, which represents a decrease of 11% and 4.9%, respectively, compared to the previous forecast. Toyota’s decision to adjust its expectations for EV and PHEV sales marks two consecutive downward revisions, highlighting the challenges the company faces in meeting its EV targets. Nonetheless, the investments in China and the US represent critical steps in Toyota's ongoing efforts to accelerate its EV production and meet its 1.5 million EV sales goal by 2026.

Cyclic VAC US magnet recycling partnership boosts North American circularity

Cyclic Materials

The Cyclic VAC US magnet recycling partnership marks a major step toward a circular rare earth magnet supply chain in North America. Under a new 10-year exclusive deal, Cyclic Materials will recycle swarf from VAC’s Sumter, South Carolina magnet plant. As a result, the Cyclic VAC US magnet recycling partnership links cutting-edge US magnet manufacturing with low-carbon, recycling-based feedstock.

Building a circular rare earth magnet supply in the US

The Cyclic VAC US magnet recycling partnership will capture byproducts from VAC’s US production lines. VAC produces neodymium-iron-boron magnets for automotive, defense, industrial and renewable energy uses. Meanwhile, the Sumter facility will anchor long-term supply for General Motors’ EV platforms under a decade-long agreement.

Cyclic will process the swarf into recycled rare earth raw materials with a reported 75pc lower carbon footprint than mined material. In parallel, Cyclic plans to invest over $20mn in a Mesa, Arizona plant. That facility is designed to process 25,000 t/yr of end-of-life magnet components from early 2026. Together, these projects push US magnet recycling beyond pilots and into industrial scale.

VAC’s US growth links primary offtake and recycling loops

VAC’s US expansion combines primary offtake, federal funding and recycling partnerships into one integrated ecosystem. E-VAC, VAC’s US subsidiary, has secured more than $200mn from the US Defense and Energy departments. These funds support the Sumter plant, which will ramp magnet output through the decade.

At the same time, VAC signed an offtake agreement with Pensana for mixed rare earth carbonate from Angola’s Longonjo project. That deal will support eVAC’s magnet output rising from 2,000 t/yr to 12,000 t/yr by 2029. The Cyclic VAC US magnet recycling partnership adds a second feedstock leg, closing material loops around swarf and, in time, end-of-life magnets. Therefore, VAC’s model blends upstream mining offtake with downstream recycling to reduce dependence on Chinese supply.

The Metalnomist Commentary

This partnership shows how serious US and allied players have become about mine-to-magnet-to-recycle value chains. If Cyclic can scale its Arizona facility as planned, swarf and scrap could evolve from waste streams into strategic feedstock. For OEMs like GM, a resilient US magnet base that mixes primary and recycled material will be central to long-term EV and defense planning.

BlueOval SK Kentucky battery production begins, marking a US EV supply milestone

BlueOval SK

BlueOval SK Kentucky battery production has officially started. BlueOval SK Kentucky battery production supplies Ford and Lincoln EVs. BlueOval SK Kentucky battery production strengthens domestic content and scale. The Kentucky 1 plant carries 43 GWh per year. A twin 43 GWh plant sits on the same site. The JV is Ford and SK On.

Capacity ramp, model timing, and US industrial policy

The Glendale campus targets two plants at 43 GWh each. The first line produced commercial cells on 19 August. Therefore, Ford secures near-term cell supply in the US. Ford will also invest $2bn in Louisville. That supports a midsize electric pickup in 2027. As a result, localized cells pair with localized assembly.

Portfolio adjustments, Tennessee delay, and lithium sourcing shifts

Ford and SK planned 129 GWh across three plants. However, the Tennessee plant slips to 2028. Prototype output should start in 2027. The glidepath reflects slower US EV adoption. Ford trimmed a Liontown spodumene order. Liontown resold up to 150,000 wet tonnes to Chengxin. Supply chains continue adjusting to demand signals.

The Metalnomist Commentary

US cell capacity is arriving, but demand pacing remains uneven. Watch yield learning curves, offtake allocation, and IRA-driven cost per kWh. Tennessee timing and model launches will steer utilization and margins.

US Tariffs on Chinese Lithium-Ion Batteries Set to Reach 82.4%

Chinese Lithium-Ion Batteries

New Tariff Policy to Significantly Impact the EV Battery Market

US President Donald Trump’s recent tariff policies will result in a substantial increase in the import tariff on batteries from China, with lithium-ion batteries facing a sharp rise to 82.4%. This change, effective April 5, 2025, is set to impact the importation of both electric vehicle (EV) and non-EV lithium-ion batteries, a move likely to affect various industries reliant on these energy storage systems.

The Impact of the 82.4% Tariff on Lithium-Ion Batteries

The new tariff structure applies a 34% reciprocal tariff on Chinese imports, pushing the total tariff on lithium-ion EV batteries to 82.4%. Non-EV batteries will face a lower, but still substantial, tariff of 64.9% until January 2026, when it will rise to 82.4%. The new rates will affect not only the electric vehicle industry but also energy storage and consumer electronics, which rely heavily on lithium-ion battery technology.

This sharp tariff increase is a part of broader trade policies aimed at countering China’s trade practices, and it will likely influence the cost of batteries across multiple sectors, leading to higher prices for consumers and manufacturers alike.

Additional Tariffs and the Section 301 Plan

The 82.4% tariff on lithium-ion batteries includes several layers of duties already in place. These include the existing 3.4% duty imposed by U.S. Customs and Border Protection, as well as two separate 10% tariffs on Chinese products implemented since Trump’s administration began. Moreover, current Section 301 tariffs on lithium-ion EV batteries are set at 25%, while non-EV batteries are taxed at 7.5%. These tariffs are part of the broader US strategy to address concerns about intellectual property and trade imbalances.

The Biden administration's plan to raise the Section 301 tariff on non-EV batteries to 25% by January 2026 reflects the long-term trade policy direction for China-US relations.

China and EU Resume Electric Vehicle Talks Amid Growing US Tariff Pressures

US tariff, China

Negotiations on Price Commitments Could Ease Trade Friction in the EV Market

China and the European Union (EU) have decided to resume negotiations regarding a price commitment mechanism for battery electric vehicles (BEVs). This decision follows the EU's implementation of countervailing duties on Chinese BEV imports in 2024. The goal of these talks is to replace the tariffs imposed on Chinese electric vehicles (EVs), addressing ongoing trade tensions between China and the EU.

EU's Countervailing Duties and the Push for a Price Commitment Mechanism

In October 2024, the European Commission finalized its ruling on countervailing duties on BEVs imported from China, which came into effect at the end of October. These duties ranged from 17% to 35.3%, impacting major Chinese automakers like BYD, SAIC, and Geely. The aim was to counter what the EU viewed as unfair pricing practices by Chinese EV manufacturers. However, these tariffs have faced opposition from both China and European companies seeking to expand their market share in the fast-growing electric vehicle sector.

Despite early talks on a price commitment mechanism in November 2024, the discussions stalled without significant progress. However, on April 10, 2025, China’s Ministry of Commerce announced that both sides had agreed to resume negotiations on the price commitments and to discuss broader issues of investment cooperation in the automotive industry.

US Tariffs Intensify the Pressure on China and the EU

The resumption of talks between China and the EU comes amidst escalating trade tensions with the United States. As of April 11, 2025, the US imposed a 145% tariff rate on imports from China, adding additional pressure on Chinese manufacturers, particularly in the electric vehicle and battery sectors. US President Donald Trump's tariffs, which were initially implemented in 2024, compounded by those under the Biden administration, have made it nearly impossible for Chinese EVs and lithium-ion batteries to enter the US market.

In an effort to counterbalance the US's growing tariff measures, China has been seeking closer economic ties with the EU. Chinese Premier Li Qiang held discussions with EU President Ursula von der Leyen on April 8, 2025, addressing the need for structural solutions to re-balance bilateral trade relations. The talks have emphasized the urgency of enhancing market access for European businesses in China and forging a collaborative approach to the challenges posed by US tariffs.

Potential Impact on the Electric Vehicle Market

If China and the EU reach an agreement on the price commitment mechanism, it could significantly alter the landscape for Chinese EVs in Europe. Prior to the implementation of the countervailing duties, the EU accounted for about 28% of China’s new energy vehicle (NEV) exports, which includes both BEVs and hybrid plug-in vehicles. However, the tariffs have drastically reduced Chinese EV exports to Europe.

The continuation of trade protectionist measures from both the US and the EU is putting immense pressure on China’s EV and battery markets, particularly as it struggles to enter key international markets. The future of Chinese electric vehicle exports largely hinges on these negotiations, and any breakthrough could bring Chinese-made EVs back into the competitive EU market.

Lucid critical minerals partnership targets stronger US EV supply chains

Lucid Motors

Lucid Motors has formed the Lucid critical minerals partnership to bolster domestic sourcing for EV manufacturing. The collaboration, called MINAC, unites prospective US producers and Lucid to accelerate critical mineral development. As a result, the Lucid critical minerals partnership seeks to reduce reliance on foreign inputs and strengthen national supply resilience.

How MINAC plans to accelerate supply

MINAC will identify regulatory and technical hurdles that slow US critical mineral projects. It will also foster long-term agreements between producers, automakers, and parts suppliers. Therefore, the Lucid critical minerals partnership aims to convert pilot output into bankable supply for EV supply chains.

Partners and policy alignment

Lucid partnered with Alaska Energy Metals, Graphite One, Electric Metals, and RecycLiCo to launch MINAC. Meanwhile, the initiative aligns with President Donald Trump’s March executive order promoting domestic critical mineral production. The Lucid critical minerals partnership positions US automakers to secure future feedstock more predictably.

MINAC’s structure targets timely procurement for nickel, graphite, and other battery materials. However, success depends on permitting progress and commercial offtake execution. As a result, sustained coordination across producers and OEMs will be essential.

The Metalnomist Commentary

This move signals OEMs are stepping upstream as policy and geopolitics reshape battery material flows. Watch for binding offtake, permitting milestones, and financing that translate policy momentum into metal at scale.

Lucid to Acquire Nikola Facilities and Assets in Arizona

Lucid & Nikola

Lucid Expands U.S. Footprint with Key Facility Acquisition

Electric vehicle maker Lucid Group has agreed to acquire assets from bankrupt rival Nikola Corporation, further expanding its Arizona operations. Lucid will take over Nikola’s Coolidge manufacturing plant and Phoenix development facility, both critical to Nikola’s former truck production efforts.

The assets include battery development and environmental testing chambers, which align with Lucid’s growing focus on in-house component testing. This acquisition is subject to approval by the U.S. Bankruptcy Court for the District of Delaware following Nikola’s Chapter 11 filing completed on 10 April.

Lucid to Absorb Former Nikola Workforce

As part of the deal, Lucid plans to employ more than 300 former Nikola workers, aiming to retain valuable EV talent. The move provides operational continuity for Lucid while preserving jobs in the Arizona EV manufacturing sector.

Meanwhile, Lucid reported 3,109 vehicle deliveries in the first quarter of 2025 — a 58% increase from the same period last year. This growth, combined with the asset acquisition, signals Lucid's commitment to scaling up U.S. production and engineering capabilities.

Strategic Expansion Amid Industry Consolidation

The Coolidge and Phoenix facilities offer Lucid immediate access to infrastructure for advanced testing and localized manufacturing. With U.S. EV competition intensifying, strategic acquisitions like this provide a faster path to capacity growth and vertical integration.

The Metalnomist Commentary

Lucid’s takeover of Nikola’s Arizona sites reflects the broader realignment in U.S. EV manufacturing. As newer players collapse, survivors like Lucid capitalize — gaining assets, talent, and time.

Aludyne Linamar auto parts deal reshapes North American chassis supply

Aludyne

The Aludyne Linamar auto parts deal marks a significant reshaping of North America’s chassis and structures supply chain. Aludyne will sell most of its North American precision casting, machining and manufacturing plants to Linamar for $300mn, with closing expected within 30 days. The transaction transfers a broad footprint of Tier 1 assets at a time when the regional automotive sector faces EV uncertainty and capacity rebalancing. As a result, the Aludyne Linamar auto parts deal strengthens Linamar’s position with OEMs while allowing Aludyne to exit capital-intensive operations.

Linamar deepens chassis portfolio with Aludyne plants

The Aludyne Linamar auto parts deal will fold Aludyne’s US and Mexican plants into Linamar’s structures and chassis division. Linamar gains established North American production of knuckles, subframes, control arms and axle housings, all core safety-critical components. This expansion enhances Linamar’s ability to offer integrated chassis solutions, which helps automakers rationalise suppliers and reduce logistics complexity.

Meanwhile, the Aludyne assets complement Linamar’s recent move into Europe through the purchase of George Fischer’s iron foundry in Leipzig. Together, these acquisitions expand Linamar’s geographic and product reach across cast and machined suspension and structural parts. Therefore, the company positions itself as a global Tier 1 partner able to support multi-platform programmes across internal combustion, hybrid and battery electric vehicles.

EV headwinds force rethink of giga-casting strategy

At the same time, Linamar is trying to divest its aluminium die giga-casting plant in Welland, Ontario, completed in 2024. That facility was originally designed to make large structural castings for EV platforms, targeting long-term supply to major OEMs. However, the end of US EV tax credits under President Donald Trump has weakened demand visibility for high-volume EV structures. This shift explains why the Aludyne Linamar auto parts deal now looks more attractive than betting solely on giga-casting growth.

As a result, Linamar appears to be pivoting back toward a diversified mix of cast and machined chassis parts, with less exposure to a single EV-heavy technology bet. The acquisition balances risk by anchoring the group in essential underbody and suspension components that remain necessary across all powertrains. For automakers, a stronger Linamar could offer greater resilience in North American sourcing, even as EV policy volatility complicates long-term platform planning.

The Metalnomist Commentary

The Aludyne Linamar auto parts deal underlines how policy-driven EV headwinds are reshaping capital allocation in the auto supply chain. Tier 1 suppliers are moving away from single-technology bets toward diversified portfolios of foundational components and regional footprints. For metals suppliers and casting houses, the key will be aligning product mix with flexible, multi-powertrain platforms rather than relying on overly optimistic EV adoption curves.

Panasonic Energy Battery Supply Secures Harbinger’s EV Ambitions

Harbinger

Panasonic to Power Harbinger’s Medium-Duty EV Lineup

Panasonic Energy has officially become the battery supply partner for Harbinger, a California-based electric vehicle (EV) startup. The agreement covers Panasonic’s high-energy 2170 cells, which will be used in all Harbinger vehicle models. These cells, initially produced in Japan, will be shipped to Harbinger’s headquarters in Garden Grove, California, for integration.

U.S. Battery Manufacturing to Expand for EV Market

To localize production, Panasonic and Harbinger plan to scale up operations at Panasonic’s De Soto plant in Kansas. This initiative will support the creation of the first fully US-sourced commercial EV battery packs. The move aligns with broader U.S. supply chain and IRA-compliant sourcing strategies in the EV industry.

Commercial EV Momentum Builds with Strategic Orders

Harbinger began production in early 2025 and has approximately 5,000 pre-orders from major customers such as Bimbo Bakeries USA and THOR Industries. The Panasonic Energy battery supply deal supports the company’s ability to meet demand while securing domestic and reliable sourcing for future growth.

The Metalnomist Commentary

Panasonic’s strategic partnership with Harbinger exemplifies the growing trend of vertically aligned EV supply chains. The shift to U.S.-based battery sourcing not only strengthens industrial resilience but also signals a new era for commercial vehicle electrification.