US aims to limit China’s role in electric cars

• Posted on December 4, 2023December 4, 2023
• by Nana Kwesi Coomson
• Comment

The US has unveiled rules aimed at keeping Chinese components out of electric cars sold in the country.

The restrictions are tied to government incentives for electric cars made in America.

The hotly-debated limits are intended to help build up the industry in America, but critics say they could slow adoption of electric cars.

Chinese firms currently produce the vast majority of electric car batteries and the minerals used in them.

But US politicians have cast over-reliance on Chinese manufacturers as an economic and security risk.

Planned partnerships between major firms, such as Ford and China’s CATL, a battery manufacturer, have been subject to criticism and debate.

Last year, Congress passed a climate law offering billions in tax incentives and other money to try to boost the industry in the US.

The law included a tax incentive worth up to $7,500 per vehicle for buyers of electric cars made in America.

The climate law, which the White House says has sparked nearly $100bn in private investment in the US related to electric cars, immediately barred electric cars made outside the country from receiving tax credits.

The US has unveiled rules aimed at keeping Chinese components out of electric cars sold in the country.

The restrictions are tied to government incentives for electric cars made in America.

The hotly-debated limits are intended to help build up the industry in America, but critics say they could slow adoption of electric cars.

Chinese firms currently produce the vast majority of electric car batteries and the minerals used in them.

But US politicians have cast over-reliance on Chinese manufacturers as an economic and security risk.

Planned partnerships between major firms, such as Ford and China’s CATL, a battery manufacturer, have been subject to criticism and debate.

Last year, Congress passed a climate law offering billions in tax incentives and other money to try to boost the industry in the US.

The law included a tax incentive worth up to $7,500 per vehicle for buyers of electric cars made in America.

The climate law, which the White House says has sparked nearly $100bn in private investment in the US related to electric cars, immediately barred electric cars made outside the country from receiving tax credits.

-BBC