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US and Japan Sign Pact on Crucial Minerals for Electric Cars Batteries

The US and Japan will sign a trade agreement including crucial minerals required for electric car batteries as US making effort to minimise its supply chain dependency on China.

March 28, 2023. By EI News Network

The United States and Japan declared about a trade agreement on electric vehicle battery minerals that is essential for uplifting their battery supply chains and allowing Japanese auto manufacturers broader access to USD 7,500 per vehicle US EV tax credit.

The US and Japan will sign a trade agreement including crucial minerals required for electric car batteries as US making effort to minimise its supply chain dependency on China.

US President Biden governance prepares to issue information on how electric-car makers can select for the maximum tax credit under the Inflation Reduction Act. This works out as a milestone step of climate legislation acted out by the US Congress last year for initiate clean energy generation.

Yasutoshi Nishimura, Japan’s minister of economy, trade and industry, stated that the trade deal would smooth the path for electric vehicles consist of metals procured in Japan to be entitled for tax incentives under the IRA.

The Inflation Reduction Act (IRA) contained a USD 7,500 consumer tax credit for electric vehicle purchases, renewing and modifying the tax credit.

The trade agreement doesn’t push any trading barriers, and a US official stated the U.S. and Japan presently levy no export duties for dealing crucial minerals between their nations.

The two nations also undertook to collaborate detail about revising foreign investments into the minerals sector.

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Sustainable Transport

Inflation reduction act