The United States and Japan on Tuesday signed a trade deal on minerals for electric vehicle batteries that is key to strengthening their battery supply chains and giving Japanese automakers greater access to a new $7,500 tax credit for electric vehicles in the United States, Reuters reported.

According to senior Biden administration officials, the quickly negotiated agreement prevents the two countries from imposing bilateral export restrictions on minerals key to electric vehicle batteries. These minerals include lithium, nickel, cobalt, graphite and manganese.

The agreement also aims to reduce US-Japan dependence on China for such materials, calling for cooperation in combating other countries’ “non-market policies and practices” in the sector and in conducting checks on foreign investment in their supply chains of key minerals. (Photo: Buurserstraat386 | Dreamstime.com)