Washington, D.C.—On February 22, SAFE Vice President of Strategic Industrial Materials Joe Quinn testified at the U.S. Department of Treasury’s public hearing on the Inflation Reduction Act (IRA) 45X Advanced Manufacturing Production Credit. The hearing followed the conclusion of a six-week comment period on the proposed rule.
In his testimony, Quinn commended Treasury’s amended aluminum definition in the proposed rule. “The initial definition said that aluminum is created from bauxite; however, alumina is converted from bauxite, not aluminum. Thankfully, the new guidance clarifies the true form of the supply chain,” Quinn said.
Quinn noted that the current definition of production costs is not inclusive enough and should include market-driven costs. “Alumina and anodes, which account for 50 percent of aluminum production, are not currently included,” Quinn stated. “Because these inputs add value to aluminum production, they should be included in 45X’s defined production costs.”
Testifying alongside Quinn were industry leaders representing the full spectrum of American mining, processing, and manufacturing of aluminum and other critical minerals. The 45X provision of the IRA has the capacity to revitalize the declining domestic aluminum industry and strengthen supply chains for all the critical minerals that are essential to national and energy security.
Both SAFE’s Center for Strategic Industrial Materials (C-SIM) and its Center for Critical Minerals Strategy (Minerals Center) submitted written comments on Treasury’s proposed rule. The two Centers are spearheading complementary efforts to ensure this well-intentioned legislation is implemented in a way that works with innovative American industry leaders, not against them without diluting the benefits of the tax credit for domestic producers and undermining the efforts to reinvigorate advanced manufacturing at home.
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About SAFE
SAFE is an action-oriented, nonpartisan organization committed to transportation, energy, and supply chain policies that advance the economic and national security of the United States, its partners, and allies. SAFE has convened business and former military leaders since 2004 to support secure, resilient, and sustainable energy solutions. Visit secureenergy.org to learn more.
Media Contact
Leslie Hayward
lhayward@secureenergy.org
