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President Biden and European Commission Ursula von der Leyen said Friday the two sides will open negotiations on the use of critical minerals used to produce batteries for electric vehicles.
The two leaders met at the White House amid growing European complaints that clean energy subsidies in the U.S. Inflation Reduction Act will divert investment away from Europe and hurt their economies.
In a joint statement after their meeting, Biden and von der Leye said they would “immediately begin negotiations on a targeted critical minerals agreement” to ensure that minerals extracted or processed in the European Union would count for clean vehicle tax credits under the IRA law.
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The U.S. legislation says that for 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; also, 50% of components in batteries must be manufactured or assembled in North America by 2024, with the percentage rising gradually to 100% by 2028.
Saying this week it would invest more in the U.S. and step back from Europe, Exxon Mobil slammed Europe’s windfall profits taxes on oil and gas producers while praising the U.S. Inflation Reduction Act.