Climate Politics
Made-in-US Rules for EV Batteries Shift in Fine Print of Climate Law
The Treasury Department’s interpretation of a few key words could allow more components to be made overseas.
A worker installs a stack of lithium-ion batteries onto a battery pack for an electric vehicle in Japan.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The interpretation of a few words of regulation by the US Treasury Department could upend expectations for how tens of billions of dollars in new electric-vehicle tax incentives will be distributed, according to Bloomberg discussions with a dozen manufacturing executives, battery analysts and government officials.
At stake over the coming weeks is the extent to which a critical part of the battery supply chain will end up being made in North America or remain where it’s currently concentrated, in Asia.