Name: US to Lift Subsidies for EVs Using Chinese Materials
Uploaded: 2023-09-29T05:24:54.000Z
Description: The future of the U.S. electric car industry is in the Biden administration's hands.

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The future of the U.S. electric car industry is in the Biden administration's hands.

Starting in 2024, price-conscious customers might face fewer options for electric vehicles as Washington plans to strip away a $7,500 subsidy for those who buy cars made with materials from"foreign entities of concern."

The rule seeks to reduce reliance on Chinese-made materials and batteries for electric cars.

Starting next year, buyers can’t use the credit on cars that contain battery components from any source that the U.S. deems a “foreign entity of concern,” a vague term meant to reduce American reliance on Chinese batteries and materials.

President Joe Biden is expected to decide this fall how strictly to enforce that requirement. If the rules are too tough, few EVs—if any—will qualify for the tax credit, potentially leaving Americans without that incentive to switch from gasoline-powered cars.

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