Guidance from the Treasury Department will spell out how hard a line the U.S. is drawing against electric vehicles with battery parts or minerals sourced from China.
Electric cars from the Chinese manufacturer BYD — a major global rival to U.S.-based Tesla — wait to be loaded on a ship at Suzhou Port. | AFP via Getty ImagesThe Treasury Department is about to impose rules that could make it even harder to persuade Americans to buy electric cars — and already has Republicans primed to accuse President Joe Biden of aiding China.
Meanwhile, uncertainty over Treasury’s decision is freezing private investment in electric vehicle manufacturing in the United States, automakers say — at a time when the growth of EV sales is also slowing below what some manufacturers had expected. The law already prohibits giving the tax credit to vehicles that aren’t assembled in the U.S., Canada or Mexico. And it restricts the credit based on the percentage of battery components and critical minerals that are sourced domestically.
The domestic mining industry is also promoting a stringent interpretation that would drive up the incentive to buy domestically sourced lithium, nickel and other critical minerals. The second question is what makes a company a “foreign entity of concern” — the specific term that the climate law uses in describing companies barred from involvement in the supply chain for vehicles that get the tax credit., a law aimed at lessening Chinese dominance of the semiconductor industry.
The electric vehicle industry contends that Treasury shouldn’t apply the CHIPS definition, because the two laws have different objectives. While the electric vehicle tax credit is intended to create a U.S.-based alternative to a supply chain that China now dominates, the CHIPS Act is meant to prevent U.S. semiconductor technology from leaking into China, said Alex Laska, deputy director for the climate and energy program at the think tank Third Way.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Rep. Comer: Subpoenas For Bidens in 'Near Future'The Biden family will be served with 'two dozen' subpoenas in the coming days connected to their business dealings abroad, House Oversight Chair James Comer told Fox News' 'Sunday Morning Futures.'
Weiterlesen »
Apple's wishy-washy guidance; AMD's AI optimism: Weekly tech roundupApple's wishy-washy guidance; AMD's AI optimism: Weekly tech roundup
Weiterlesen »
AUD/USD Price Forecast: Aussie Dollar Looks to RBA for GuidanceAUD prices trade marginally lower today as investors keenly await tomorrow’s RBA interest rate decision.
Weiterlesen »
Dear Abby: Where is the line between not judging someone and holding them accountable?I know every situation is different, but is there some general guidance you can offer?
Weiterlesen »
How states are guiding schools to think about AICalifornia and Oregon have put out AI guidance, but other states plan to remain mum.
Weiterlesen »
‘Fear The Walking Dead’ Season 8, Episode 9 Review: Just Say No, Dwight!I write about TV shows like House Of The Dragon, The Witcher, The Rings Of Power, Stranger Things, Yellowjackets, Severance and many others. I also cover movies, video games, comic books and novels, largely in the fantasy, science-fiction, horror and superhero genres.
Weiterlesen »