WASHINGTON (AFP) – United States (US) President Joe Biden and top European Union (EU) official Ursula von der Leyen announced on Friday the start of negotiations on granting access to European producers seeking to export critical minerals for electric vehicle (EV) batteries under a new US programme to stimulate the green economy.
“We intend to immediately begin negotiations on a targetted critical minerals agreement for the purpose of enabling relevant critical minerals extracted or processed in the EU” to qualify for the US government subsidies under Biden’s signature Inflation Reduction Act (IRA) stimulus plan, they said in a joint statement.
Batteries are a vital part of the US plan for massive expansion of electric vehicle production.
The IRA sets aside some USD370 billion for tax credits and clean energy subsidies, but contains a “made-in-America” requirement for qualification.
European leaders have grown worried that EU-based energy and auto companies will be shut out or move to the US. The aim of the mineral talks will be to provide one significant exemption for the EU.
“Today we agreed that we will work on critical raw materials that have been sourced or processed in the EU and to give them access to the American market as if they were sourced in the American market.
“We will work on an agreement,” von der Leyen told reporters after meeting Biden. In their joint statement, the two leaders stressed that the IRA and new European initiatives meant to mirror the programme, such as the Green Deal Industrial Plan, should work in tandem.
“Both sides will take steps to avoid any disruptions in transatlantic trade and investment flows that could arise from their incentives.
“We are working against zero-sum competition so that our incentives maximise clean energy deployment and jobs – and do not lead to windfalls for private interests,” the statement said.
