A senior Biden administration official said the deal prevents the two countries from approving bilateral export restrictions on the minerals most crucial for EV batteries, such as lithium, nickel, cobalt, graphite and manganese. The agreement also aims to lower both countries reliance on China for such materials.
Minerals-focused trade agreements are one way for the Biden administration to open up access to the $7,500 per vehicle EV tax credits included in the climate-centered Inflation Reduction Act (IRA). (Related: EV price hikes cancel out $7,500 tax credits offered by government under Inflation Reduction Act.)
The Biden administration is now working out a same deal with the European Union (EU). Half of the credit for consumers is reserved for North American-assembled vehicles and batteries, while the other half of the credit is contingent on at least 40 percent of the value of critical minerals in the battery having been extracted or processed in the U.S. or countries with a U.S. free trade agreement, or recycled in North America."One of the goals of the IRA is to broadly strengthen supply chains for these critical minerals and their processing," said Treasury Secretary Janet Yellen during her recent testimony in the House Ways and Means Committee.
The Department of the Treasury is expected to set up new demands that will mandate battery components and crucial minerals be sourced from nations with U.S. free trade agreement in order to get the full $7,500 per vehicle consumer tax credit. Although the EU and Japan are not part of any free trade agreement with America, the recent deals are designed to provide the allies the same status in trade of essential minerals.The U.S. and Japan have agreed to review the minerals deal every two years, including whether it is applicable to terminate or amend it.
Follow Robocars.news for more news about electric vehicles and EV battery minerals. Watch the video below to know more about the true cost of electric car batteries. This video is from the #ClaireEdwards Uncensored channel on Brighteon.com.Global bankruptcy already baked in
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