The United States and European Union have agreed to renegotiate a trade agreement allowing European manufacturers to receive U.S. tax credits for producing critical minerals such as lithium and nickel for electric car batteries. The leaders of both sides, President Joe Biden and European Commission President Ursula von der Leyen, met at the White House on March 10 and issued a joint statement committing to a deeper economic relationship as they address shared national and economic security challenges. They further stated their commitment to address the climate crisis and build resilient, secure, and diversified clean energy supply chains by initiating negotiations over a “Made in America” provision in the Inflation Reduction Act (IRA). The provision, which the European Union deemed “protectionist,” prevents European manufacturers from benefiting from American tax credits. The expanded tax credit aims to boost mineral production and processing as well as expand access to sources of critical minerals that are sustainable, trusted, and free of labor abuses.
Biden considers tax credit for EU carmakers’ battery production.
