The Treasury Department announced Friday that it has finalized rules for a tax credit that serves to encourage sales of electric vehicles while taking aim at foreign entities of concern, such as China, Russia, North Korea, and Iran, and their grip on critical minerals and EV battery components.
“Today’s actions from Treasury and DOE provide clarity and certainty to an EV marketplace that’s rapidly growing,” John Podesta, senior White House climate adviser, said in a written statement. “The direction we’re headed is clear — toward a future where many more Americans drive an EV or a plug-in hybrid and where those vehicles are affordable and made here in America.”
“While recognizing the need for measures to expedite EV deployment, FEOC exemptions for any battery materials should be temporary: We need a clear exit strategy, lest we continue our dependencies on adversaries and further undermine the competitiveness of U.S. and allied critical minerals projects,” said Abigail Hunter, executive director of energy and defense nonprofit SAFE’s Center for Critical Minerals Strategy.