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Biden Issues New Rules That Aim to Cut China Out of the U.S.’ EV Battery Supply Chain

A worker assembles a Ford F-150 Lightning electric-powered pick-up truck that will no longer qualify for federal subsidies if it contains parts and resources from China. JEFF KOWALSKY / AFP

U.S. consumers will no longer benefit from a $7,500 tax credit when they buy an electric vehicle that contains battery metals that were produced in China, according to new rules released by the Biden administration on Friday.

The new regulations are intended to transform automotive supply chains that currently rely heavily on Chinese-sourced battery metals and other components critical for the manufacture of electric vehicles.

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