According to the terms of Joe Biden’s big climate plan (IRA), published on Friday, American motorists will finally be able to receive a subsidy if they buy an electric car partially produced abroad, writes AFP.

These terms of providing a subsidy of 7,500 dollars for the purchase of a new electric car were expected especially in Japan and Europe, where the proposals published by the Ministry of Finance could not be liked.

Originally planned at the start of the year and drawing deep concern from both the European Union (EU) and the United States’ Asian allies, including Japan and South Korea, the proposals were seen as a sign that the Biden administration was heeding the concerns expressed by its partners.

However, under a law passed last summer, these subsidies were intended to accelerate the transition of Americans to electric vehicles and to support the development of the electric vehicle industry in the country, especially in the production of batteries.

The plan, hammered out after tense negotiations with West Virginia Democratic Sen. Joe Manchin, who initially opposed it and was the deciding vote, called for the bulk of the vehicle and battery to be sourced from North America.

However, conditions published by the Ministry of Finance, which will come into force in April, relax the rules of origin for both vehicles and critical materials required for batteries or the batteries themselves.

The terms, which will be subject to consultation before final approval, also apply to countries bound by the free trade agreement, “a term that includes recently reached agreements on critical materials,” the Finance Ministry said in a statement.

In total, 21 countries are targeted by the campaign, including Japan, which signed an agreement on Monday that specifically addresses “critical minerals and electric vehicle battery supply chains.”

Although the EU is not yet on the list, the EU hopes to sign a similar agreement in the near future, with negotiations officially set to begin when European Commission President Ursula von der Leyen visits Washington on March 10. (photo: Chernetska, Dreamstime.com)