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U.S. Working To Reduce Dependence On Chinese EV Materials

The previously-passed Inflation Reduction Act (IRA) contained new tax credits for EVs aimed at spurring sales, but there was one big catch – that same bill also contained strict requirements pertaining to the percentages of Chinese EV raw materials that were allowed to be used in the batteries powering those vehicles. This resulted in many EVs being dropped from the list of those eligible for tax credits, highlighting the need to beef up the U.S. domestic supply chain. Now, that’s precisely what some lawmakers are trying to do.

According to Automotive News, representatives Rob Wittman and Kathy Castor will lead the new bi-partisan Critical Minerals Policy Working Group, which “will work to create transparency into U.S. supply-chain dependency for critical minerals and develop a package of investments, regulatory reforms, and tax incentives to reduce that dependency.” The goal, specifically, is to reduce America’s dependence on Chinese EV raw materials, which currently dominate the market.

“Critical minerals are the building blocks of everything from basic consumer goods to advanced military technology. America’s reliance on the Chinese Communist Party’s control of the critical mineral supply chain would quickly become an existential vulnerability in the event of a conflict,” House select committee chair John Moolenaar said in a statement.

In addition to this action, the Biden Administration increased U.S. tariffs on Chinese EV models and certain raw materials by a substantial margin just over one month ago, citing potential national security threats and unfair competitive practices. The European Union may follow suit, but officials in that region are currently meeting with Chinese officials and automakers to discuss alternatives to that action.

We’ll have more on this new group soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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