Tesla wants to change battery strategy for US electric vehicle tax credits

Tesla will suspend plans to manufacture batteries in Germany in order to seek to qualify for tax breaks for electric vehicle and battery manufacturing in the US. Tesla has been working to produce batteries in-house and has discussed shipping battery manufacturing equipment it had intended to use at its Berlin plant to the US.
In August, US President Joe Biden signed the Inflation Reduction Act, which provides tax incentives for electric vehicle manufacturers who purchase batteries in the US, as well as a $7,500 tax credit for some buyers of electric vehicles that meet battery purchase requirements.
Tesla's shift in battery strategy comes at a time when the escalating situation in Russia and Ukraine and soaring energy costs in Europe have affected the manufacturing industry. And geopolitical tensions have also led to higher battery material prices.
Tesla's move reflects new laws in the US that are reshaping the electric vehicle industry, accelerating competition to secure domestic supplies of batteries and related raw materials. Shortly after Biden signed the new law, Tesla told officials in Texas that it was looking for a site for a lithium refining plant.
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