Battle Over US EV Credits Heats Up With Carmakers Left Idling

US policymakers, eager to foster the country’s own electric-car supply chain, mostly agree Chinese raw materials shouldn’t play a prominent role in tomorrow’s American-made EVs. But what about battery materials produced with Chinese capital in other nations? Does that count?

That thorny question has emerged as a key hurdle as the US Treasury Department fleshes out the minute details in President Biden’s signature climate bill. Back in March, it released partial guidance on supply-chain requirements that lets some vehicles qualify for a $7,500 tax credit — but it hasn’t yet clarified how to classify so-called foreign entities of concern (FEOC), government-speak for businesses or groups owned ...