Biden May Give European Automakers US Tax Credits for Battery, Critical Mineral Production

Volkswagen, Europe’s largest automaker, is among manufacturers lobbying the European Union to adopt a “green incentive” package similar to those included in the United States’ Inflation Reduction Act or instead of building factories in Europe, they will do so in the United States. Fabian Bimmer/Reuters

The United States and the European Union will negotiate a revised trade agreement that could allow European manufacturers to receive U.S. tax credits for producing critical minerals such as lithium and nickel for electric car batteries.

Following a March 10 meeting at the White House between President Joe Biden and European Commission President Ursula von der Leyen, the leaders agreed to begin talks about the “Made in America” provision in the U.S. Inflation Reduction Act (IRA), which the EU maintains is “protectionist” and an obstacle in breaking free from dependence on Russian oil and gas.