The Biden administration has offered limited relief to carmakers worried about being frozen out of generous new US tax credits for electric vehicles, proposing rules on battery minerals that would expand access to the subsidies.
The long-awaited guidance released by the Treasury department on Friday spells out details on EV incentives established by the Inflation Reduction Act, the landmark climate law that featured $369bn for clean energy.
The bill signed last year made purchasers eligible for up to $7,500 in tax credits for EVs subject to stringent criteria including the origins of battery minerals and battery components. The provisions, meant to boost domestic manufacturing and jobs while fostering clean energy, are expected to cut the number of eligible vehicle models in the next few years. They have also led to spats with US allies whose carmakers want access to the nascent American EV market.