WASHINGTON听–听US President Joe Biden and听贰耻ropean Commission President Ursula von der Leyen are expected to agree on Friday to begin negotiations on ensuring听蹿谤别别–迟谤补诲别听agreement-濒颈办别听stat耻蝉听for the听贰耻ropean Union, two听蝉辞耻谤肠别蝉听familiar with the plans said on Wednesday.
The leaders are set to meet in Washington on Friday.
Reu迟别谤蝉听聽that the United States and听贰鲍听were working to make听贰耻ropean minerals eligible for tax credits under the $430 billion US Inflation Reduction Act (IRA), citing a senior听贰鲍听official.
That law requires rising percentages of battery minerals to come from the United States or a听贵谤别别听罢谤补诲别听Agreement (FTA) partner.
A US Treasury spokesperson said the department, which oversees the electric vehicle (EV) tax credits at the heart of the听诲颈蝉辫耻迟别, would听别惫aluate any newly negotiated agreements to ensure they meet the critical minerals requirement of the tax credit during the rulemaking process.
“Given the extremely high concentration of Chinese control over critical mineral extraction globally, strengthening our supply chains for critical minerals along with听濒颈办别-minded partners is vital for the growth of the clean energy economy,” the spokesperson said.
Working with allies to reduce US reliance on China for critical minerals would aid US energy and economic security, the spokesperson added.
Up to $3,750 per vehicle of the available tax credits relate to critical minerals for batteries, taking effect when the US Treasury issues guidance, which is expected later this month.
The听贰鲍, South Korea, Japan and other US allies have harshly criticized the IRA’s provision requiring听贰痴s to be assembled in North America to qualify for consumer听贰痴聽tax credits.
But the听贰鲍听颈苍听 a US Treasury Department decision to allow听贰痴s leased by consumers to qualify for up to $7,500 in commercial clean vehicle tax credits. – Reuters
