P&A Providers & Administrators
MenuMENU
SearchSEARCH

Talks Could Open EV Tax Credit to EU Materials

Resulting deal could make European battery components OK for federal break’s eligibility.

March 13, 2023
Talks Could Open EV Tax Credit to EU Materials

The EV tax credit law has so far allowed only battery components sourced from North America.

Credit:

Rathaphon Nanthapreecha

2 min to read


The U.S. and European Union will start negotiations that could open the way for eligibility of European minerals in electric-vehicle batteries for the purpose of EV federal tax credit eligibility.

If a deal is reached, minerals extracted or processed in the EU would count toward requirements for “clean” vehicles under the Inflation Reduction Act passed last year, which authorized the tax credits. The law has heretofore limited eligibility to vehicles whose battery components are sourced in North America.

Ad Loading...

Many European and Asian countries have loudly protested that parameter because it shuts them out of a growing piece of the EV market as more consumers move away from gas-powered vehicle purchases.

“We will deepen our cooperation on diversifying critical mineral and battery supply chains, recognizing the substantial opportunities on both sides of the Atlantic to build out these supply chains in a strong, secure, and resilient manner,” said a joint statement by President Joe Biden and European Union President Ursula von der Leyen.

A meeting Friday between Biden and von der Leyen also resulted in, among other joint clean-energy efforts, the launch of a dialogue aimed at coordinating the two partners’ clean-energy incentives programs. “We are working against zero-sum competition so that our incentives maximize clean energy deployment and jobs—and do not lead to windfalls for private interests,” the statement said.

LEARN MORE: EV Tax Credit Guidance Delayed

Originally posted on Auto Dealer Today

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →