U.S., E.U. Launch Talks on Battery Minerals Agreement

You Auto Know 03/17/23

U.S., E.U. Launch Talks on Battery Minerals Agreement

Following the meeting between President Joe Biden and European Commission President Ursula von der Leyen last Friday, the U.S. and E.U. announced that they will launch talks on a mineral pact that would allow E.U. manufacturers to qualify for at least part of the Clean Vehicle Tax Credit (CVTC) created by the Inflation Reduction Act. The leaders also launched a “Clean Energy Incentives Dialogue,” to coordinate clean energy subsidies going forward.

Any minerals pact is unlikely to be negotiated and ratified before the U.S. Treasury Department issues final guidance on the implementation of the battery requirements, which is due sometime this month. Members of the Senate Finanace Committee, which has jurisdiction over trade, have also raised concerns about the pact not being brought before Congress, another potential complicating factor.

The CVTC has been a major source of contention for many U.S. allies and trading partners since the passage of the IRA last year. The IRA requires that gradually increasing percentages of battery minerals are from the U.S. or a country with whom the U.S. has a free trade agreement.


Quotes of the Week

We intend to immediately begin negotiations on a targeted critical minerals agreement for the purpose of enabling relevant critical minerals extracted or processed in the European Union to count toward requirements for clean vehicles in the Section 30D clean vehicle tax credit of the Inflation Reduction Act.”
-Joint Statement of President Joe Biden and European Commission President Ursula von der Leyen (www.whitehouse.gov)

I support what they're trying to do [in discussing a minerals pact with the E.U.], but they need to come to Congress.”
 -Senator Mike Crapo (R-ID), Ranking Member on the Senate Finance Committee (Inside U.S. Trade)

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Friday Feel Good

Here is just one recent example of how dealers are doing good:

Last month Jenkins Subaru of Bridgeport made a donation to the Clarksburg Mission, delivering eight boxes of a thousand socks to help provide footwear for those living at the mission, as well as those affected by homelessness. A monetary donation was also made that will go towards any needs the mission is working to meet.

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