The $430 billion IRA was passed last August and offers subsidies and tax incentives for a swathe of domestically produced green industry products, including a $7,500 consumer tax credit to buyers of North American-made EVs.
It also includes a restriction on battery minerals and component sourcing to the region, in an attempt to phase out Chinese inputs.
Automakers are increasingly seeking to source batteries close to their plants – but a large proportion of the raw materials inside them are still likely to come from, or pass through China, spelling trouble under IRA rules.
The VW Group has not yet announced any strategic changes induced by the IRA, but said last March it planned to invest at least $7.1 billion in North America and add 25 new EVs there by 2030.
It began production of the ID 4 electric crossover at its Chattanooga plant in Tennessee last year and is upgrading its Mexican plants in Puebla and Silao to start building EVs, motors and related components by mid-decade.
Automotive News contributed to this report.
