Biden, EU leader hold talks on proposal on electric vehicles

• Published date: 11 March 2023
• Publication title: The Korea Times

President Joe Biden and European Commission President Ursula von der Leyen met Friday to try to complete a plan that the White House hopes will turn the page on a spat between the U.S. and European Union over electric vehicle tax credits.

Biden and von der Leyen were expected to agree to open negotiations between the U.S. and the EU on a deal that could boost the use of European minerals critical in the production of electric vehicle batteries that are eligible for U.S. tax credits through Biden's roughly $375 billion clean energy law that passed last year, according to White House officials.

Biden at the start of the meeting said he and von der Leyen would discuss "driving new investments to create clean energy industries and jobs and make sure we have supply chains available" for both continents.

Biden and von der Leyen are also expected to use their Oval Office meeting to discuss Western coordination to support Ukraine in the war against Russia, joint efforts to decrease Europe's dependence on Russian fossil fuels and the Biden administration's growing concerns that China is considering providing weaponry to Russia for use in the war.

The Treasury Department said in a statement that an agreement "with like-minded partners" could help provide a measure of "security and stability by ensuring the United States and allies and partners are not reliant on China for critical minerals." White House officials hope an agreement with the EU can be reached soon, but also plan to consult members of Congress, labor groups and others with a stake in the outcome.

Treasury Secretary Janet Yellen, testifying Friday before the House Ways and Means Committee, said the administration is trying to create "surgical agreements" that "permit our close allies to also contribute minerals and their processing" for use in electric vehicles that are assembled in North America.

"This is going to be a vast and growing market," she said.

Von der Leyen and other European leaders have voiced opposition to incentives in the Inflation Reduction Act that Biden signed in August that favor American-made electric vehicles. The legislation stipulates that for U.S. consumers to be eligible for a tax credit of up to $7,500 on their EV purchase, the EV's battery must largely contain minerals from the U.S. or a country with which the U.S. has a free-trade agreement. Additionally, 50 percent of components in batteries must be manufactured or assembled in North America by 2024, with that percentage rising...