Y Combinator’s Garry Tan Goes to the MatRead more

Sen. Joe Manchin thinks the spirit of the Inflation Reduction Act is being violated. Photo: Kevin Dietsch/Getty

The Electric: A Rift Over the Climate Law Bursts Into the Open

By  |  March 30, 2023 4:30 AM PDT
Photo: Sen. Joe Manchin thinks the spirit of the Inflation Reduction Act is being violated. Photo: Kevin Dietsch/Getty

Tension over the $369 billion climate law boiled over Wednesday, with Sen. Joe Manchin (D-W.Va.) threatening to sue to stop implementation of the legislation if he believes the White House is doing it the wrong way. His admonishment came ahead of the Biden administration’s scheduled release of guidance Friday for which electric vehicles will qualify for $7,500 per vehicle in consumer tax credits.

Manchin, whose staff wrote key parts of the climate law, told a conference that the administration is not interpreting the law to force the EV, battery and mining industries to establish their factories in the U.S. Instead, the administration, seeking to loosen China’s grip on the battery supply chain, is “friend-shoring,” allowing too much of the industry to take root in countries with which the U.S. has free trade agreements.

The outburst reflects competing ideas of how to build a U.S. battery industry to promote the use of EVs while also thwarting China’s dominance of the industry. When his staff wrote the battery provisions of the Inflation Reduction Act last year, Manchin sought to spur a robust refining industry that would convert raw metals like nickel, cobalt and lithium into chemicals, electrodes and finally EV batteries—somewhat replicating the midstream battery-making industry currently dominated by China. 

Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Former Apple design chief Jony Ive and OpenAI CEO Sam Altman. Photos by Getty.
Exclusive
Designer Jony Ive and OpenAI’s Sam Altman Discuss AI Hardware Project
Jony Ive, the renowned designer of the iPhone, and OpenAI CEO Sam Altman have been discussing building a new AI hardware device, according to two people familiar with the conversations.
From left to right: Blair Effron, Robert Pruzan and David Handler. Photos by Getty; Tidal Partners.
Exclusive Finance
Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley Dreams
The San Francisco Bay Area–based bankers at Centerview Partners, the investment bank that advised Silicon Valley Bank’s owner and Credit Suisse through recent turmoil, got two doses of bad news last week.
Art by Clark Miller
Exclusive startups entertainment
MasterClass Takes a Crash Course in Frugality
MasterClass had a problem with the shoot featuring its latest star instructor, Walt Disney Co. CEO Bob Iger.
OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella. Photos via Getty
Exclusive microsoft ai
How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar
Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI , the startup Microsoft funded in exchange for the right to use its cutting-edge technology.
From left: Paul Graham, Garry Tan and Michael Seibel. Photos by Getty. Art by Mike Sullivan.
Exclusive startups ai
Y Combinator’s Garry Tan Goes to the Mat
Garry Tan was in his happy place. Surrounded by food trucks and techies basking in San Francisco’s September sun, the CEO of Y Combinator snapped selfies with entrepreneurs as he meandered through a crowd of 2,700 attendees at the startup accelerator’s annual alumni event.
Dave Rogenmoser, cofounder of Jasper. Photo via Getty.
Exclusive startups ai
Jasper, an Early Generative AI Winner, Cuts Internal Valuation as Growth Slows
Jasper AI, an early darling of the generative artificial intelligence boom, has cut the internal value of its common shares 20%, according to former employees who were notified by the company.