President Joe Biden’s tax credits for American-made electric vehicles are “running into a problem,” a new report details, as China controls the supply chain for raw materials needed to manufacture batteries.
Last year, House and Senate Democrats approved Biden’s Inflation Reduction Act which gives thousands of dollars in tax credits to American consumers to buy electric vehicles made in the U.S., Mexico, and Canada.
Now, Axios reports that Biden’s electric vehicle tax credits “to spur domestic battery manufacturing is running into a problem: Some critical raw materials are only found abroad, and China controls much of the supply.”
Specifically, China dominates a number of raw materials needed to manufacture batteries for electric vehicles such as graphite, lithium, and cobalt. By 2025, for instance, China is set to control about a third of all of the world’s lithium.
Some automaker executives, like Stellantis CEO Carlos Tavares, are hoping the Chinese raw…
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