CLEPA supports EU efforts to end discriminatory US subsidies for electric vehicles
The EU and United States established a dedicated task force to discuss provisions in the US Inflation Reduction Act (US-IRA) that exclude EU-manufactured green goods from subsidies, including electric vehicles. The next ministerial meeting between the two Atlantic partners will take place on 5 December.
The US-IRA was signed into law in August. The bill introduces up to $7,500 in purchasing incentives for electric vehicles. The incentive will, however, not apply to most cars assembled in the EU or cars with an EU-manufactured battery.
The US-IRA introduces local content requirements for potential vehicle incentives for cars of up to $55,000. For the first $3,750: At least 40% of the battery’s critical minerals must be extracted or processed in the U.S. or in a country with which the U.S. has a free trade agreement. This is set to increase to 80% in 2027. To qualify for the second $3,750: At least 50% of the battery components – measured by value – must come from North America. The percentage increases every year to 100% in 2029.
CLEPA has supported the European Commission with data on the potential impact and will continue to encourage the European Commission in its efforts to avoid discriminatory measures against EU industry.
In: CLEPA News, Growth & Competitiveness