The US government has issued a final rule regarding the Inflation Reduction Act, which aims to promote the adoption of electric vehicles (EV) while reducing reliance on foreign powers like China. The rule pertains to provisions that bar vehicles from eligibility if their battery minerals come from China, Russia, Iran, and North Korea.
However, the final rule issued on Friday includes a two-year carve-out for certain minerals whose sources are difficult to trace and an expansion of the provision to include graphite. This mineral can make up a major share of an EV battery and often comes from China.
The auto industry has welcomed the move, arguing that it will bolster EV adoption and give companies more time to shore up their supply chains. The industry has been working to reduce its reliance on foreign minerals and develop more sustainable and resilient supply chains. The rule is seen as a positive step towards achieving these goals.
United States President Biden (Credits: KFF Health News)
However, not everyone is pleased with the rule. Critics, including Sen. Joe Manchin ((link unavailable)), argue that it circumvents stipulations in the law meant to reduce reliance on foreign powers like China.
Manchin has been a vocal critic of the Biden administration’s handling of the EV industry and has expressed concerns that the rule will undermine efforts to develop a more robust and secure domestic supply chain.
Despite these criticisms, the rule is crucial to promoting EV adoption and reducing the country’s reliance on fossil fuels. The Inflation Reduction Act aims to incentivize the development and use of clean energy technologies, and the rule is an integral part of this effort.
The rule will help support the growth of the EV industry and promote a more sustainable and resilient supply chain by providing a two-year carve-out for certain minerals and expanding the provision to include graphite.
Joe Biden, USA President (Credits: NPR)
The rule is also seen as a positive step towards reducing the country’s reliance on foreign powers like China. Promoting the development of a more robust and secure domestic supply chain will help reduce the country’s vulnerability to supply chain disruptions and geopolitical tensions.
This is particularly important given the ongoing competition between the US and China and the need to ensure that the US remains a leader in the development and use of clean energy technologies.
The final rule issued on Friday is an important step towards promoting EV adoption, reducing reliance on foreign powers like China, and developing a more sustainable and resilient supply chain. While there may be some criticisms of the rule, it is seen as a positive step towards achieving these goals and promoting a more secure and prosperous future for the US.
