President-elect Donald Trump’s transition team is reportedly planning to repeal the Inflation Reduction Act's (IRA) electric vehicle (EV) tax credits, which currently offer up to $7,500 per vehicle. This decision, reported by Reuters on November 14, is seen as a move to fund Trump’s proposed tax cuts.

The energy policy team, led by Harold Hamm (founder of Continental Resources) and North Dakota Governor Doug Burgum, is actively discussing the rollback of these credits. Trump frequently criticized the IRA during his campaign, particularly targeting Biden's EV mandates, and pledged to end them.

If implemented, this policy could deliver a significant blow to the EV and battery manufacturing sectors, which are already facing challenges due to slowing sales. The IRA currently provides these credits to vehicles meeting specific criteria for battery origin and U.S.-based manufacturing. However, many EV models, including those from Hyundai and Kia, do not fully qualify under these stringent requirements, limiting their access to the tax benefits.

The potential repeal underscores Trump’s broader criticism of green energy incentives and highlights his administration's intent to prioritize traditional energy sectors while cutting federal spending on renewable subsidies. This could exacerbate challenges for companies reliant on federal EV support to maintain competitiveness in the market.