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Manchin Nearly Killed EV Credit With Take-It-or-Leave-It Threat

  • Senator previously called US subsidizing EVs ‘ludicrous’
  • Carmakers are uneasy over new sourcing requirements in law
Manchin speaks to members of the media outside of the West Wing after President Biden signed the Inflation Reduction Act of 2022 on Aug. 16.
Manchin speaks to members of the media outside of the West Wing after President Biden signed the Inflation Reduction Act of 2022 on Aug. 16.Photographer: Sarah Silbiger/Bloomberg
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Senator Joe Manchin said he was willing to kill a popular consumer tax credit for the purchase of electric vehicles if the industry didn’t adhere to controversial new sourcing requirements, giving automakers a take-it-or-leave-it ultimatum that finally got both sides to agree.

The admission, made Friday at a town hall in Charleston, West Virginia, shed light on how the lawmaker came to support a credit he described earlier this year as “ludicrous.” With Manchin’s backing, the EV piece was part of the sweeping legislative package that was signed by President Joe Biden earlier this week.