As part of the Joe Biden government’s climate plan, subsidies intended for the purchase of electric cars in the United States will be even stronger for cars that are not produced on American soil.
Indeed, these subsidies will soon no longer be available to buyers of electric vehicles that contain battery components made in China or other “competitor countries.” The decision aims to strengthen the security of US supply chains and will take effect in 2024.
The United States against its eternal enemies
The Ministry of Finance emphasized that in order to have the right, a pure electric vehicle cannot contain any battery components manufactured or assembled in China, Russia, North Korea or Iran. These countries are designated as “foreign persons of concern” according to the administration’s proposed rules, which are currently subject to public comment before formal implementation.
In addition, under the terms of the plan, starting in 2025, eligible electric vehicles cannot contain critical metals mined, processed or recycled in any of these four countries. These measures are designed to reduce the dependence of the nascent US electric vehicle industry on China.
Is the event too difficult to implement?
Joe Biden’s climate plan, known as the Inflation Reduction Act (IRA), requires tax credit of up to $7,500 for the purchase of a US-made electric vehicle. However, the proposal risks limiting the number of vehicles eligible for tax breaks, increasing pressure on automakers already facing a transition to electric vehicles.
Senator Joe Manchin, the centrist Democrat whose vote was crucial to the passage of the IRA, expressed concern about the strength of the rules. He believes the administration is looking for workarounds that will allow China to profit at the expense of American taxpayers.
For his part, Mike Gallagher, the Republican chairman of the House Select Committee on the Chinese Communist Party, warns that the proposal could increase reliance on China through certain exceptions to the rules.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.