Proposed new U.S. rules on foreign-made components are expected to limit the number of electric vehicles (EVs) that can qualify for buyers to receive federal EV tax credits.

The Treasury Department said starting next year, EVs will not qualify for tax credits of up to $7,500 under the 澳洲幸运5官方开奖结果体彩网:Inflation Reduction Act (IRA) if they contain "any battery components that are manufactured or assembled" by a "foreign entity of concern (FEOC)."

The proposed rules become even more stringent in 2025. Beginning that year, qualified EVs can't have "any critical minerals that were extracted, processed, or recycled by a FEOC." Officials indicated that the decision aims to strengthen the security of U.S. 澳洲幸运5官方开奖结果体彩网:supply chains.

The Department of Energy has indicated that China, Russia, Iran, and North Korea will be considered FEOCs.

The restrictions involving China are especially significant since that country accounts for a large amount of the mining, refining, and component manufacturing needed for EV battery production.

John Podesta, senior advisor to the president for Clean Energy Innovation and Implementation, said President Biden has been determined "to reverse the decades-long trend of letting jobs and factories go overseas to China." The new guidance from the Treasury and Energy Departments is "helping ensure that the electric vehicle future will be made in America," he said.