{"id":2113110,"date":"2023-12-01T09:24:07","date_gmt":"2023-12-01T14:24:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-sets-ev-tax-credit-rules-meant-to-cut-out-china\/"},"modified":"2023-12-01T09:26:35","modified_gmt":"2023-12-01T14:26:35","slug":"biden-administration-sets-ev-tax-credit-rules-meant-to-cut-out-china","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-sets-ev-tax-credit-rules-meant-to-cut-out-china\/","title":{"rendered":"Biden admin&#8217;s EV tax credit rules aim to exclude China"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-administration-sets-ev-tax-credit-rules-meant-to-cut-out-china%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2113110&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Biden Administration \u200dTakes \u2064Aim at Chinese-Made EV Batteries<\/h2>\n<p>The Biden administration made\u2062 a bold move on Friday, announcing that electric vehicles (EVs)\u200c with batteries made in China or using \u200dChinese materials \u200cwill no longer qualify\u200d for subsidies. This decision extends to any companies worldwide that\u200c are influenced by \u2064Beijing. The goal is\u200d to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-intends-to-fund-ev-transition-with-2-billion-in-grants\/\" title=\"Biden admin plans to grant B for EV transition.\">strengthen domestic manufacturing<\/a>\u2063 and shift the EV supply chain \u2062away from \u2062China.<\/p>\n<p>This new standard, however, could pose\u200d a threat to President Biden&#8217;s ambitious plan \u200bof having EVs account for \u206250% of all car sales by 2030.\u200d With \u2063fewer cars eligible for the $7,<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-push-for-green-energy-tax-credit-benefiting-union-workers-in-budget\/\" title=\"Democrats Push For Green Energy Tax Credit Benefiting Union Workers In Budget\">500 consumer tax credit<\/a>, achieving \u200cthis goal becomes more challenging.<\/p>\n<p>China currently dominates the EV battery supply chain, producing over 74% of cathodes, more than 90% of anodes, and roughly 75% of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nickel-price-surge-threatens-automakers-electric-vehicle-plans\/\" title=\"Nickel Price Surge Threatens Automakers\u2019 Electric Vehicle Plans\">lithium-ion battery cells<\/a>.\u200b While the new rules are\u2063 rigorous, senior administration officials believe they are &#8220;strict\u2063 but achievable.&#8221;<\/p>\n<p>Despite potential obstacles, \u2062recent EV\u200b sales rates in the United States have been promising. Electric vehicles now make up\u2062 10% of\u2063 all\u2064 new vehicles\u200c sold, indicating a strong \u2063consumer interest in EVs.<\/p>\n<h3>The \u200dThree Main Components\u200c of the New Guidance<\/h3>\n<ol>\n<li>Manufacture of batteries: The restrictions \u200dwill take effect in 2024 \u200dfor entities incorporated,\u200d headquartered, or performing relevant activities in &#8220;covered nations&#8221; \u200dsuch as China, Russia, North Korea, and Iran.<\/li>\n<li>Sourcing of critical minerals: These restrictions will \u2064go into effect in \u200c2025.<\/li>\n<li>Contract or\u200b licensing arrangements: Companies operating outside covered nations\u2064 must obtain certain rights for their vehicles to qualify for the 30D\u2064 requirement.<\/li>\n<\/ol>\n<p>This definition of &#8220;foreign entities of concern&#8221;\u200d not\u2063 only affects \u200beligibility\u200c for tax credits but also\u200b eligibility for the manufacturing grant program \u2064established \u2063by the 2021 Bipartisan Infrastructure Law.<\/p>\n<p>There is some uncertainty regarding how these\u2063 terms will apply\u200c to Ford&#8217;s partnership\u200c with Chinese battery\u2064 company CATL. Congressional Republicans have criticized the partnership, raising concerns\u2063 about money from tax\u200d credits flowing \u200bto Chinese entities.<\/p>\n<p>The new guidance builds upon existing tax credit requirements, including \u200ca battery \u200dcomponent\u2062 requirement that mandates\u2063 60% or \u200cmore of a battery to\u2062 be \u2063manufactured in North America by 2024, gradually\u2064 increasing to 100% by 2029. Additionally, a critical mineral requirement states that at least 50% of critical minerals \u200cin an\u2064 EV battery must be sourced or processed in the U.S. or \u200ba country with a free trade agreement, rising\u2062 to 80% \u2062by 2027.<\/p>\n<p>Senator Joe Manchin had pushed for stricter standards for\u200d EV eligibility for tax\u200b credits, and the \u200dadministration faced pressure to address his concerns. Manchin had brokered a\u200c deal\u2063 with Senate Majority\u2064 Leader Charles Schumer \u2064to pass the\u200b Inflation \u2063Reduction \u200cAct, but he has since criticized \u200bthe administration for prioritizing the rapid adoption of green technologies over\u200c energy security and domestic \u2063production.<\/p>\n<p> <\/p>\n<h2> What are the concerns over national security and\u200d economic\u2062 competitiveness that\u200c have prompted the Biden \u200badministration to exclude Chinese-made EV batteries\u2064 from subsidies?<\/h2>\n<p><span>  With sales growing by 43% \u2062in the first half of \u20622021. This surge in \u2064popularity is\u2062 driven by factors such as increased environmental awareness, government incentives, and\u2064 improved technology.<\/p>\n<p>However, concerns over national security and economic competitiveness have pushed the Biden administration to take action. By reducing dependence on\u2064 Chinese-made\u2062 EV batteries, the \u200cUnited \u2063States aims to safeguard its supply chains and \u2063promote domestic manufacturing. This move is part of the administration&#8217;s broader strategy to revitalize the American manufacturing sector and create jobs.<\/p>\n<p>The decision to exclude Chinese-made EV batteries from subsidies has\u2063 drawn mixed reactions. Supporters argue that it will incentivize local production and ensure a \u200dsecure supply of battery components. They highlight the importance of establishing a robust and self-sufficient EV supply chain within the \u200cUnited States.<\/p>\n<p>On the other\u2063 hand,\u2063 critics express concerns over potential negative impacts on the EV industry. With China dominating battery \u200dproduction, alternative \u200bsources may \u200dstruggle \u200bto meet the demand.\u200c This could result in \u200b<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-adviser-admits-his-spending-will-cause-inflation-going-to-be-bumps-concerns-very-serious\/\" title=\"Biden Adviser Admits His Spending Will Cause Inflation: \u2018Going To Be Bumps,\u2019 Concerns \u2018Very Serious\u2019\">supply chain disruptions<\/a> and potential price increases for EVs,\u2063 ultimately hampering the sector&#8217;s\u200d growth.<\/p>\n<p>To\u200d mitigate \u200dthese challenges, the \u2062Biden administration has also allocated significant funding to boost domestic battery manufacturing. As part of \u2063the \u2062infrastructure bill, around\u2062 $5 billion will \u200cbe invested in battery \u200dproduction, research, \u200band development. This investment \u2064aims to rapidly scale up domestic production capacity and support innovation\u200b in battery \u200dtechnology.<\/p>\n<p>The administration&#8217;s decision to prioritize domestic manufacturing is not exclusive \u2063to the EV sector. It aligns with the broader\u200b agenda of \u200breducing reliance on foreign \u200bimports \u2064and strengthening the country&#8217;s economic resilience. \u2063By encouraging local \u2063production, the United States aims to create jobs,\u2063 stimulate economic growth, and enhance\u2064 national security.<\/p>\n<p>Overall, the \u2062Biden administration&#8217;s move to exclude Chinese-made EV batteries from \u200bsubsidies marks a significant \u200cshift in \u200bpolicy. While \u200dit may \u200dpose challenges for achieving the ambitious goals set for the EV industry, it also presents an opportunity to strengthen \u200bdomestic manufacturing, drive innovation, and secure the \u200ccountry&#8217;s supply chains. The\u2064 success of this policy will\u200d depend \u2064on the ability to balance economic growth \u200bwith environmental concerns and to foster collaboration between industry stakeholders,\u2063 government agencies, and\u2062 research institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Electric vehicle batteries away from China<\/p>\n","protected":false},"author":1,"featured_media":2113111,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2113110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2113110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2113110"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2113110\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2113111"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2113110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2113110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2113110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}