A conservative think tank that’s grabbed Democrats’ attention for its links to Project 2025 is now calling for the evisceration of all the Biden administration’s tax incentives for electric vehicles and renewable energy, arguing that subsidies are benefiting China — not the United States.
The Heritage Foundation in a paper published Thursday asserted that China has outmaneuvered and outspent the U.S. in cementing its grip over the shift to renewable energy and electrified transportation. That includes the extraction and refining of raw materials like lithium, cobalt and nickel needed to build EV batteries and equipment.
And the Biden administration, by incentivizing purchases of more clean energy goods — everything from solar panels to EVs to batteries — is propping up China’s ability to continue its clean energy investments and outcompete the U.S., Heritage argues.
The U.S. would be better served by investing further in its own fossil fuel resources, such as oil and natural gas, and making it easier to tap domestic mineral reserves rather than needing to rely on supply chains that China largely dominates, the paper states. The report is the third in a series that Heritage is publishing focused on China’s trade practices.
