US, Japan Strike Deal on Supply of Minerals for EV Batteries – by Shoko Oda and Eric Martin (Bloomberg News – Mar 27, 2023)

https://www.bnnbloomberg.ca/

(Bloomberg) — The US agreed to boost cooperation with Japan on critical mineral supply chains and to expand access to tax breaks as President Joe Biden aims to counter China’s dominance of the electric vehicle battery sector.

Following the pact, EVs that use materials that have been collected or processed in Japan will be eligible for incentives under the US Inflation Reduction Act, Japanese Trade Minister Yasutoshi Nishimura said Tuesday in Tokyo.

“This announcement is proof of President Biden’s commitment to building resilient and secure supply chains,” US Trade Representative Katherine Tai said in a statement. “Japan is one of our most valued trading partners.”

The deal is similar to an agreement Washington has been negotiating with the European Union which would extend access to some of the as much as $369 billion in handouts and tax credits available over the next decade under the IRA, in areas including wind, solar and electric vehicles.

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