Car miniature, "Electric vechicles (EVs)" words, U.S. and Chinese flags are seen in this illustration taken, September 26, 2023.
REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsWASHINGTON, Nov 13 (Reuters) - Democratic Senator Joe Manchin urged the U.S. Treasury on Monday to adopt the "strictest possible standards" to prevent Chinese-produced minerals or Chinese battery companies from winning electric vehicle tax credits.
In 2022, Congress passed the Inflation Reduction Act barring $7,500 in future consumer EV tax credits if any battery components are manufactured or assembled by a "foreign entity of concern."
The foreign entity of concern rules come into effect in 2024 for completed batteries and 2025 for critical minerals used to produce them.
A key decision in the guidance is whether Ford Motor Co's (F.N) deal to license the technology of Chinese battery manufacturer CATL (300750.SZ) for use in Ford-owned U.S. battery plants will meet the Treasury's standards to access the tax credits.
Persons:
Dado Ruvic, Joe Manchin, Manchin, Janet Yellen, Ford, David Shepardson, Chris Reese, Jonathan Oatis
Organizations:
REUTERS, Rights, Democratic, U.S . Treasury, Energy Committee, Treasury, Ford, Thomson
Locations:
China, Michigan