Thank you.
The most significant component of the IRA, as it relates to auto manufacturing—particularly zero-emissions vehicle manufacturing—is what's called the “advanced manufacturing production credit” in section 45X of the IRA. What it does is provide a refundable credit of $35 per kilowatt hour to companies that build battery cells or modules in the United States.
This is a game-changer. It's the most significant incentive we've seen in a very long time, and Canada now has to compete with not just municipal and state-level governments, but the federal government. That tax credit alone is estimated at a cost of $30 billion U.S. If we want to win battery investments, we have to match that.