A series of new rules enacted by Biden in December 2022 aim to shape the U.S. electric vehicle industry by limiting the participation of Chinese companies in the chain, while encouraging more production of batteries and raw materials to move to the United States. The core elements of this policy include:
First, the new rules stipulate that only electric vehicles that use U.S. materials and are made in the U.S. can enjoy a tax credit of up to $7,500. This provision is intended to incentivize automakers to place production bases and chains in the United States, thereby enhancing the competitiveness of domestic industries.
Second, starting in 2024, electric vehicle batteries must not use some of the materials provided by Chinese, Russian, North Korean and Iranian companies. This regulation directly affects the ** chain of core components of electric vehicles and aims to reduce the dependence on enterprises involved in these countries to ensure the reliability and quality of electric vehicles
Third, from 2025, critical minerals such as lithium, cobalt and nickel for electric vehicles must also not come from companies in these countries. This decision is aimed at ensuring the independence of the United States in strategic resources in the field of clean energy and preventing the unavoidable impact on the chain due to geopolitical factors.
The new rules quickly sparked a wide-ranging and complex response. Some automakers and battery makers say they are carefully reviewing the new rules and will need time to fully understand their impact. Some conservative lawmakers argue that the rules are still not enough to reduce U.S. dependence on China, and worry that it could lead to a diversion of U.S. taxpayers' money to Chinese companies.
Within the automotive industry, opinions are sharply divided. On the one hand, some analysts believe that these regulations may promote the transformation of the entire automotive industry ** chain, prompting more companies to set up production bases and R&D centers in the United States. This will help boost the U.S. clean energy industry and spur innovation and job growth. On the other hand, however, there are concerns that this change could pose a potential threat to automakers with rising costs and productivity challenges.
In response to the political reaction, some conservative lawmakers criticized the new rules as insufficient to address the issue of U.S. dependence on China. They fear that this could lead to a flow of money from U.S. taxpayers to Chinese companies, intensifying economic competition between the two countries. Some progressives, however, see the rules as an important step in ensuring that the United States has a strategic advantage in clean energy and is expected to promote sustainable development.
For the average consumer, these new regulations may affect the availability and availability of electric vehicles to some extent. Due to the increase in manufacturing costs, some manufacturers may be forced to pass the cost on to consumers, resulting in the selling price of electric vehicles**. At the same time, due to the uncertainty of the ** chain, some consumers may face a more limited selection of models and delivery delays.
Against this backdrop, industry experts have expressed their opinions and conducted in-depth analysis of the effects of the new regulations. Some experts pointed out that this series of regulations is expected to promote the self-sufficiency of the U.S. electric vehicle industry and improve the country's technological innovation level in the field of clean energy. However, there are also concerns that this could pose a range of challenges, including technical bottlenecks, insufficient capacity, and increased chain vulnerability.
Overall, these new rules enacted by Biden** in December 2022 have sparked a wide and deep discussion. While striving to promote the development of the clean energy industry in the United States, it is necessary to pay close attention to changes in the industrial chain to ensure that the implementation of regulations can balance economic interests and consumer demand. The success of this series of policies will depend on the cooperation and coordination of all parties to achieve the sustainable and prosperous development of the electric vehicle industry in the United States.