WASHINGTON: The U.S. Treasury Department announced on Friday an extension of tax credits for electric vehicles (EVs) using Chinese graphite until the end of 2026. This decision was detailed in the final rules published on the Federal Register under the clean energy vehicle provisions of the Inflation Reduction Act (IRA), which now temporarily exempts graphite from the prohibition on minerals from "foreign entities of concern," which includes China, Russia, North Korea, and Iran.
According to Yonhap News Agency, the IRA initially provides up to $7,500 in tax credits to buyers of EVs assembled in North America that meet specific sourcing requirements. Industry observers note that these regulations aim to restructure EV supply chains amidst growing tensions between the U.S. and China. Seoul's Industry Minister Ahn Duk-geun hailed the decision, acknowledging it as a significant achievement for South Korean firms reliant on Chinese graphite supplies under the stringent new U.S. policies.