Lynn Parins Comments on the Biden Administration’s Accelerated EV Push
Foley & Lardner LLP Partner Lynn Parins is quoted in the Law360 article, “Biden’s Accelerated EV Push Has Auto, Truck Cos. On Edge,” discussing the challenges for automakers in overcoming supply chain hurdles and getting consumer buy-in to comply with the Biden administration’s domestic manufacturing requirements for electric vehicles.
One issue is the Inflation Reduction Act explicitly excludes EVs from tax credit eligibility if their battery components or critical minerals are sourced from a “foreign entity of concern.” This is widely viewed to be a provision directed at China, which matters because a significant portion of critical EV minerals like lithium, nickel, and cobalt currently are sourced from China. The U.S. Treasury Department is drafting additional guidance which may clarify that language, and the Biden administration is working to negotiate international deals with new suppliers.
“[This] certainly would open up the supply chain lines to other countries that are sources of critical minerals, but I don’t think that element is really the biggest pin in this wheel given the manufacturing requirements that may be a heavier lift for some manufacturers,” Parins explained.
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