(Washington) Subsidies for the purchase of an electric vehicle in the United States, a flagship measure of Joe Biden’s climate plan, will no longer be granted to buyers of cars containing battery components manufactured in China or other “rival countries,” according to a plan announced Friday by the Treasury Department.
“To strengthen the security of American supply chains, starting in 2024 an eligible clean vehicle cannot contain any battery components manufactured or assembled” in China, Russia, North Korea or Iran, the Treasury stressed in a press release. press.
These four countries are considered “foreign entities of concern,” under rules presented by the administration that are open to public comment before taking effect.
Furthermore, “from 2025, an eligible clean vehicle cannot contain critical metals extracted, processed or recycled” by one of these countries, these rules still provide.
Joe Biden’s major climate plan, the Inflation Reduction Act (IRA), provides a tax credit of up to $7,500 for the purchase of an electric vehicle manufactured in the United States.
The proposal comes as Washington works to reduce dependence on China for its burgeoning electric car industry.
But this will have the effect of reducing the number of vehicles eligible for tax credits while increasing pressure on automakers, already struggling with the transition to electric car production.
Senator Joe Manchin, a centrist Democrat whose vote was key to passing the IRA, however, ruled that these rules were not strong enough to move supply chains from China.
“This administration is, once again, trying to find workarounds and delays that leave the door wide open for China to profit off the backs of American taxpayers,” he said in a statement .
Mike Gallagher, Republican chairman of the House Select Committee on the Chinese Communist Party, warned that the proposal would, if anything, increase dependence on China, citing certain exemptions to the rules.
