Why automakers are pressing Manchin, West Virginia, to change the EV tax credit deal. He is not going there.

The proposal would remove the existing 200,000-vehicle cap on a $7,500 credit and impose new restrictions on automakers that have not yet hit that limit.

A joint proposal by Manchin and Senate Democratic Leader Chuck Schumer of New York would also create a new $4,000 tax credit for used EVs.

Automakers say the percentage targets for privately sourcing critical minerals and battery components are too high and rise too quickly. Asked about the concerns of automakers, Sen. Gary Peters, D-Mich., said Tuesday, “We’re having some discussion about that.”

General Motors It said on Friday that “some provisions are challenging and cannot be achieved overnight.” The automaker said it was “encouraged by the framework set out in the legislative text.”

Asked whether auto manufacturers have submitted specific changes to Manchin, the head of the auto trade group Alliance for Automotive Innovation, John Bozzella, told Reuters. “We’re having a good conversation.” He declined to elaborate.

The bill includes increasing requirements for a percentage of North American battery components by value and will discontinue any battery with no Chinese components after 2023. automakers including GM and Tesla Inc., have met the earlier limit and are no longer eligible for the existing EV tax credit.

Sen. Marco Rubio, R-Fla. The U.S. on Tuesday said it would file an amendment to ensure that EV credits can only apply if critical minerals from EV batteries are obtained in the U.S. or from a country with which the U.S. has a free trade agreement. ,

The new EV tax credits, which expire at the end of 2032, will be limited to trucks, vans and SUVs with retail prices not exceeding $80,000 and cars with prices not exceeding $55,000. They will be limited to households with an adjusted gross income of up to $300,000 annually.

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President Joe Biden aims to include EVs in half of all new vehicles sold in 2030. The bill includes billions of dollars in new loans and grants for auto production.