Column: US hits the EV accelerator to cut Chinese metals ties.
The Inflation Reduction Act includes the “largest investment ever in combating the existential crisis of climate change”, according to President Joe Biden.Around $369 billion of federal funds will flow into climate change and energy security, boosting domestic capacity to produce wind turbines, solar panels and electric vehicles.The IRA extends and expands the existing electric vehicle subsidy of up to $7,500 but conditions the tax credit on the sourcing of the mineral content of the battery.
That, though, is the point. The link between subsidy and mineral input is meant to accelerate the drive to build out domestic, or at least friendly, critical minerals capacity and break China’s stranglehold.Auto-makers should “get aggressive and make sure that we’re extracting in North America, we’re processing in North America and we put a line on China,” said Senator Joe Manchin, the architect of the minerals sourcing component of the EV subsidy scheme.
Also not on the list is the European Union, which has already said the new EV subsidy scheme may breach World Trade Organization rules. The challenge for auto-makers to qualify for the subsidies still remains immense, given the multi-year process of building new mines, particularly in the United States.The Department of Energy was given $6 billion to invest in a domestic battery supply chain by the Bipartisan Infrastructure Law passed last year.
The IRA delivered a little more bounty by lifting the tax credit to 30% for investment in any “advanced energy project”, which covers a wide spectrum of green transition technology.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
All 50+ US State EV Infrastructure Deployment Plans Are Ready To GoUS federal and state governments are moving with unprecedented speed to start delivering funding for a planned national EV charging network.
Read more »
U.S. Western states deadlocked on cutting Colorado River useSeven U.S. Western states that share Colorado River water are poised to miss a federal deadline for drastic consumption cuts amid a megadrought.
Read more »
Aston Martin DBR22 Concept, Mercedes-Benz EQE SUV Interior, And 2023 Dodge Durango SRT Hellcat: Your Morning Brief | CarscoopsAston Martin DBR22 Concept, Mercedes-Benz EQE SUV Interior, And 2023 Dodge Durango SRT Hellcat: Your Morning Brief | Carscoops carscoops
Read more »
2022 Season Preview: Five Predictions for the 2022 Ohio State Football SeasonAs part of our season preview series, here's the 2022 installment of my annual column making five bold predictions for Ohio State's upcoming football season.
Read more »
Powering SF Giants’ 4th straight win, Joey Bart goes from ‘black hole’ to offensive catalystBart extended his hitting streak to a season-long 7 games with his 5th multi-hit game over that stretch.
Read more »
Stocks struggle as China rate cut sends oil tumbling By Reuters*GLOBAL STOCKS STRUGGLE AS WEAK CHINA DATA DAMPENS MOOD -
Read more »