The United States and Japan announce EV battery minerals trade deal
The two sides hope to rely less on China for EV battery materials.
We’ve seen several American vehicle manufacturers ramp up their efforts to produce electric vehicles and get more on the road. This has not been an exclusively American trend, as other countries have also been looking to decrease the impact of motor vehicles on the atmosphere and ecosystem. The USA has inked a deal with another nation to ease access to the necessary materials to produce EV batteries. After brief negotiations, Japan and the United States have reached a trade deal for EV battery minerals.
The United States and Japan announced their new trade deal early this morning, as CNBC reported. Specifically, the deal prevents either side from putting restrictions into place that block the export of like nickel, lithium, cobalt, graphite, and other key minerals used to produce EV batteries. The United States and Japan are also hoping that this deal will make them less reliant on China for these materials, and the two sides aim to fight against “non-market policies and practices.”
Source: General Motors
One interesting aspect of this deal is that it will allow more Japanese manufacturers to qualify for the $7,500 tax credit per electric vehicle via the Inflation Reduction Act that the Biden administration introduced in 2022. It will be interesting to see if the American government looks to loop more allied countries in on this deal.
Several American and Japanese manufacturers have steadily increased their EV production efforts in recent years. With the United States and Japan striking a trade deal for EV battery material, we’ll be watching with great interest to see how the move impacts the two sides’ production habits. As we keep an eye out for more developments on that front, as well as the rest of the electric vehicle industry at large, stick with Shacknews.
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replyDonovan Erskine posted a new article, The United States and Japan announce EV battery minerals trade deal
