The coming ChinaEV showdown in Congress
- Between the lines: One auto industry source told Axios that the probes could be damaging if they make lawmakers question the benefits of EV and battery tax incentives, like those in the Inflation Reduction Act.
- Driving the news: House Republicans and Senate Democrats launched probes in recent weeks into EV and battery manufacturers, their reliance on Chinese businesses and potential risks to national security and efforts to prevent forced labor abroad.
- Why it matters: Lawmakers are setting their sights on the auto industry’s global supply relationships as bipartisan support emerges to deal with the dirtier sides of "clean energy."
- Zoom in: The Senate probe is getting results — the automakers all gave responses to the Finance Committee and lawmakers are considering whether to conduct “additional investigation,” a committee aide said.
- Their hold on supplying battery metals like graphite will make a full excision incredibly difficult.
- Meanwhile, the House Science investigation’s scrutiny of federal funding to a particular Texas-based company — Microvast — is finding a fan in Senate Energy and Natural Resources Chairman Joe Manchin.
The U.S. electric car market and its reliance on China is heading for a collision with Congress. Why it matters Lawmakers are setting their sights on the auto industrys global supply relationships [+3378 chars]