Biden’s EV Push Could End Up Costing Taxpayers Four Times More Than Advertised

Tax credits to battery manufacturers in President Joe Biden’s signature Inflation Reduction Act may wind up costing more than four times as much as the Congressional Budget Office (CBO) initially anticipated, according to Axios.

The Inflation Reduction Act provides a tax credit of $35 per kilowatt-hour for the production of batteries used in electric vehicles — roughly 35% of the cost to fabricate a cell using current methods — and initial estimates from the CBO pegged the cost of the program as roughly $30.6 billion over the next 10 years. However, following a rash of new battery investments totaling more than $73 billion in 2022 alone, analysts from Benchmark Mineral Intelligence now expect the program to cost at least $136 billion over the next 10 years, with each new investment driving the cost up further, according to Axios. 

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