The US will no longer support electric cars with battery packs from China

The US government wants to exempt electric cars with battery components from China or other “competing countries” from government subsidies. Starting in 2024, the Treasury Department in Washington announced Friday that subsidies will be given to buy electric cars only if they “have no battery components” made or assembled in China, Russia, North Korea or Iran. Its mission is to strengthen “the security of U.S. supply chains.”

According to the Ministry of Finance, from 2025 certain metals from four specified countries will no longer be entitled to state funding if they are installed in an electric car. However, the public should be given an opportunity to comment on the new regulations proposed by the Finance Ministry before they come into effect.

U.S. President Joe Biden’s climate subsidy program, the “Inflation Reduction Act,” offers bonuses of up to $7,500 (almost 6,900 euros) when buying an electric car made in the United States. The regulation also faces criticism in the EU as it disadvantages European car manufacturers.