The US government has announced new regulations that aim to keep Chinese batteries out of cars sold in the United States, a move that could push up the price of electric vehicles for American drivers.
The Biden administration on Friday proposed rules that would cut subsidies for vehicles that contain Chinese-made battery components, or are found to be produced by a company with strong ties to the Chinese government.
China is the world’s leader in EV battery production, dominating almost “every stage of the EV battery supply chain,” according to a 2023 report by the International Energy Agency (IEA).
Starting next month, following a 30-day period for public comment, vehicles with these components will no longer be eligible for a full $7,500 US tax credit, which allows consumers to save money when buying a new electric car.
Credit: cnn.com
