US Unveils Rules to Keep Chinese Parts Out of Electric Cars
The US has introduced regulations aimed at excluding Chinese components from electric cars sold in the country, Excel Magazine International has learnt.
These restrictions, linked to government incentives for American-made electric cars, aim to boost the domestic industry.
Although critics argue they might impede electric car adoption.
Presently, Chinese firms dominate electric car battery production. Planned partnerships between US and Chinese companies, like Ford and CATL, face criticism.
Last year’s climate law provides tax incentives for American-made electric cars, barring foreign-made ones from credits.
Starting in 2024, cars with certain foreign-made battery components lose eligibility, expanding to critical materials by 2025.
The proposal defines “foreign entities of concern” as those linked to China, Russia, Iran, or North Korea.
President Biden’s advisor sees this as reversing outsourcing trends, emphasizing a domestic electric vehicle future.
About 20 of over 100 US electric vehicle models currently qualify for tax credits, according to the Alliance for Automotive Innovation.
The guidance is praised for clarity but criticized by Senator Joe Manchin for potential China benefits and loose interpretation of the law.
He plans to seek revisions and support legal challenges.
