On April 11, the EC and the Alliance for Automotive Innovation hosted a briefing on Capitol Hill about the importance of preserving federal EV tax credits to protect U.S. economic and national security and remain competitive within the global automotive manufacturing industry.
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Approximately 30 individuals representing various U.S. House and Senate offices attended to discuss how a robust EV market in the United States can incentivize domestic manufacturing and the onshoring of critical mineral supply chains that are essential to furthering U.S. national security interests, and how the federal EV tax credits—especially Section 45X, the Advanced Manufacturing Production Tax Credit, and Section 30D, the New Clean Vehicle Tax Credit—help build that market.
Speakers included:
- Michael Dunne, founder and CEO of Dunne Insights
- John Bozzella, president and CEO of the Alliance for Automotive Innovation
- Joe Pittel, general counsel and vice president of legal and public affairs for Samsung SDI America Inc.
- Cristina Krasow, manager of federal affairs for American Honda Motor Co
- Paul Corbett, director of government and community affairs for MichAuto/Detroit Regional Chamber
- Aaron Viles, senior campaigns director for the Electrification Coalition (moderator)
Key Takeaways
Chinese EV companies are innovating and producing far more rapidly than the United States and other Western markets, especially in the automotive, battery technology, and software integration sectors. Michael Dunne, a former GM executive in China and an expert on Chinese auto manufacturing, spoke about China’s threat to American auto manufacturing dominance, highlighting the fact that China’s automotive market produced almost three times as many vehicles as the United States and more than the United States and European Union combined in 2024.
China’s dominance in the civilian automotive sector not only affects American auto manufacturers, but also American national security. Because China is taking full advantage of the secure and integrated supply chain it has created, from minerals processing to vehicle final manufacturing, it has increased potential to innovate, develop, and power future defense technologies, leaving the United States at a strategic disadvantage.
Our panel of speakers discussed the need for a robust EV market in the United States to remain competitive in the global automotive market and the emerging defense technology landscape. For the United States and the rest of the West to catch up to China, there is a need to incentivize a domestic manufacturing renaissance, partner with like-minded allies to create a reliable critical mineral supply chain, and encourage the development of a U.S. market for consumer products that rely on critical minerals.
The federal EV tax credits are essential to achieving these objectives. John Bozzella emphasized this, noting that 45X alone will not be enough to shift the critical mineral and battery supply chains away from China and to the United States (something the Trump administration has expressed is a priority). Bozella noted that “you’ve got to marry that with support on the demand side,” provided by the 30D consumer credit—“it’s that combination of things that makes this so powerful.”
Bozzella later emphasized that the critical mineral needs of the defense industry are not enough to motivate domestic investment, saying, “frankly, there aren’t enough fighter jets and submarines to consume all of those raw materials and critical minerals […] You need a product-consuming business here in the United States to support that.”
Highlighted Investments
In addition to bolstering our national security, the 45X and 30D federal EV tax credits are incentivizing many companies to invest in American manufacturing and American workers by expanding or constructing EV production facilities here in the United States.
Many of the companies represented on the panel emphasized the importance of these credits to their strategic business outlook, including Cristina Krasow, manager of federal affairs for American Honda Motor Co. She specifically mentioned the tax credits’ importance to Honda’s manufacturing facilities in Ohio, where they are investing billions of dollars to build batteries and EVs.
Krasow also mentioned the importance of a key provision within these credits that excludes foreign entities of concern, an important lever to shift the supply chain away from countries like China. Krasow stated that this provision, which is not included in any other credits, “really has helped start bringing that critical mineral supply chain here to the United States.”
Our speakers highlighted approximately $30.8 billion in U.S.-based EV manufacturing investments. Some of these investments include:
Honda Motor Co.
In Fayette County, OH, Honda America is undertaking a $3.5 billion joint venture with LG Energy Solutions (LGES), creating a battery cell and module production facility. Total investment in the project is expected to rise to $4.4 billion and employ 2,200 associates with an annual production capacity of 40 GWh for EVs built in Honda plants.
In Anna, East Liberty, and Marysville, OH, Honda is investing over $1 billion across its existing Ohio plants to ramp up EV production. The EV assembly line at Honda’s Marysville facility is pictured here.
SAMSUNG SDI
In Kokomo, IN, SAMSUNG SDI and Stellantis are partnering on a $6.3 billion investment in an EV battery manufacturing site with an annual production capacity of 67 GWh and 2,800 employees across two plants. The facilities source materials from five suppliers in IN, representing 1,000 additional employees.
MichAuto
Since 2018, OEMs and auto part suppliers have announced over $20 billion worth of EV and battery manufacturing projects in Michigan, making it the #1 state in the nation for EV-related investments.