Fisker accelerates U.S. factory search as new EV tax credit set to become stringent over time

Fisker accelerates U.S. factory search as new EV tax credit set to become stringent over time

American electric vehicle (EV) manufacturer Fisker Incorporated has reportedly accelerated the process of its search for a factory in the United States to be able to enjoy the Biden Administration’s new EV tax credit.

Fisker is preparing to start series production of its all-electric Ocean crossover SUV at the carbon-neutral factory in Austria as soon as November 2022. However, the company wants to eventually bring Ocean production to the U.S. Thus, it is now reportedly accelerating its search for a factory locally to be eligible for tax credits.

Some months back, Fisker Chief Executive Officer (CEO) Henrik Fisker had also hinted at the possibility of bringing Ocean production back to the U.S. Actually, the company wants to become eligible for the U.S. federal government’s electric car tax credit, which offers incentives of discounts of up to $7,500 on the purchase of a new EV. Currently, most electric cars don’t qualify for this attractive credit due to the new rules requiring manufacturers to localize their respective production activities.

More and more manufacturers that want to sell their products in the U.S. want to localize their manufacturing activities, and Fisker is no exception.

However, it will not be easy for any manufacturer to quickly transition to U.S. manufacturing, especially in case of battery-related requirements as the companies can’t just mine, refine, and get the materials ready overnight. It is for this reason that the government is also considering providing the manufacturers with some more time to be able to shift their production activities to the U.S.

According to emerging reports, Fisker is looking into various options to transition to U.S. manufacturing, including purchasing an existing U.S. factory or teaming up with automobile parts manufacturer Magna to come up with another plan. It may be noted here that Magna is already Fisker’s partner responsible for producing the Ocean electric SUV in Austria.

In a recent interview Henrik said, “I am looking at bringing Ocean production over to the U.S., and we are looking at some opportunities to produce as early as 2024.”

The entrepreneur went on to reveal that the new tax credit-related policy changes introduced by the Biden Administration prompted his company to accelerate its search for a new factory.

The all-electric Fisker Ocean SUC will be produced in Austria, while its battery packs will be sources from China. As the new U.S. tax credit threshold related to EV production and battery materials will gradually become more and more stringent over time, it will be wise for the company to quickly transition to U.S. manufacturing.

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