Billions of dollars from the 2022 Inflation Reduction Act invested in electric vehicle batteries and their supply chain are at risk of enriching companies with links to China, according to a new report.
The study commissioned by the Battery Materials & Technology Coalition (BMTC), a 4-year-old trade group of American battery-component makers and mineral producers, says language in the climate law aiming to block China from benefiting from grants and tax credits needs to be strengthened.
Federal investments “will be for naught if the U.S. does not recognize and counter China’s state-backed market dominance and manipulation with additional investments, stronger protective measures, and stringent enforcement mechanisms,” the authors said.
Batteries are one of the most expensive components of electric vehicles. Republicans and Democrats are deeply divided over the importance of EVs, but share a resolve to counteract China in an era of rising great-power conflict.