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Biden Extends $7,500 EV Tax Credit for Chinese Graphite Until 2026

May 3, 2024, 04:23 PM

The Biden administration has finalized new regulations for electric vehicle (EV) tax credits, granting automakers flexibility in sourcing battery minerals, particularly graphite from China, until 2026. The Treasury Department's updated rules allow consumers to receive up to $7,500 in tax credits for EVs that include Chinese components. Graphite is considered 'impracticable-to-trace' until 2027. These regulations aim to ease the transition away from gas-powered vehicles and boost domestic EV production, despite criticism from lawmakers like Senator Joe Manchin, who argue that the policy benefits Chinese suppliers and undermines U.S. manufacturing.