fbpx

Type to search

US Treasury Seen Limiting Chinese Role in EV Market – WSJ

The US Treasury is expected to block an EV tax subsidy for buyers of cars containing batteries, components or minerals made by state-owned Chinese companies


Analysts say a lot rides on the US Treasury's ruling that EV batteries with contributions from Chinese firms will not be eligible for a $7,500 tax credit. This image shows Leapmotor's EV production line in Jinhua (Reuters 2023).

 

Washington is expected to announce tax-credit rules on Friday (December 1) that will shape the US market for electric vehicles (EVs), a report by the Wall Street Journal said on Wednesday, adding that “the Biden administration’s guidance will likely block the subsidy for cars containing batteries, components or minerals made by state-owned Chinese companies.”

The news is important because buyers of new EVs won’t be able to claim a $7,500 tax subsidy if they get a car containing battery materials from a ‘foreign entity of concern’ under rules that seek to encourage auto supply chains in the US and push carmakers to rely less on dominant Chinese suppliers, the report said, adding that Chinese firms have been striking deals with Korean and Moroccan companies in hope that such arrangements will be permitted when the rules are revealed.

Read the full report: The WSJ.

 

ALSO SEE:

 

China EV Sales Hit Record in October Amid Demand Slowdown Worry

 

Threat of More Rate Rises Slowing the Shift to Electric Vehicles

 

Honda and GM Drop Plan to Make Cheap Electric Vehicles

 

China Extends $72bn Tax Break for Sale of EVs, Green Cars

 

Chinese EV-Makers Braced For Wave of Consolidation – FT

 

China Battery Firms Pump $4.4bn Into Korea for US EV Credits

 

Seoul Seeks Exemption so EV Makers Get US Tax Credits

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

logo

AF China Bond