 A factory of Northvolt in Skelleftea in northern Sweden on December 29, 2021 (Photo: AFP/VNA) |
The United States and EU were working to make European minerals eligible for tax credits under the 430 billion USD US Inflation Reduction Act (IRA), citing a senior EU official. That law requires rising percentages of battery minerals to come from the United States or a Free Trade Agreement (FTA) partner.
A US Treasury spokesperson said the department, which oversees the electric vehicle (EV) tax credits at the heart of the dispute, would evaluate any newly negotiated agreements to ensure they meet the critical minerals requirement of the tax credit during the rulemaking process.