Agreement Between the US and Japan to Supply Electric Vehicle Batteries
The United States and Japan reached an agreement on Tuesday regarding the supply of minerals for electric vehicle batteries. This trade agreement strengthens the supply chain for electric vehicle batteries and increases Japanese automakers’ access to the new $7,500 US tax credit for purchasing electric vehicles in the country.
This agreement prevents the two countries from imposing bilateral export restrictions on critical minerals for making electric vehicle batteries, including lithium, nickel, cobalt, graphite, and manganese. The aim of this agreement is to reduce the dependence of the US and Japan on China for such materials. The Biden administration’s clean energy policy, which defines tax incentives for buyers of American-made vehicles, has caused dissatisfaction among automakers in the European Union, Japan, and South Korea.