E&E News: Biden expected to ease EV tax credit restrictions for key Chinese mineral

Experts say the administration is in a tight spot, trying to accelerate EV adoption and meet deployment commitments under the IRA, while at the same time securing complex mineral supply chains needed for EV batteries.

The Biden administration is standing up mineral supply chains in the U.S and with trading partners through incentives, grants and loans, noted Abigail Hunter, executive director of SAFE’s Center for Critical Minerals Strategy.

At the same time, Hunter said the timeline for increasing capacity — without the influence of adversaries — doesn’t line up perfectly with the urgency of getting renewable technologies on the market.

Hunter said the possible designation of graphite as “untraceable” within the final Treasury rule is “a reflection of this tightrope” but emphasized that any exemption for graphite should be temporary.

“While we recognize the need for this current balancing act to keep us on course for EV deployment, [foreign entities of concern] exemptions for any battery materials should not be enduring,” said Hunter.

“We need a clear exit strategy, less we continue our dependencies on adversaries and undermine the competitiveness of U.S. and allied critical minerals projects further,” she said.

Read the full article: “Biden expected to ease EV tax credit restrictions for key Chinese mineral” (May 1, 2024)