Treasury eases finalized electric vehicle tax credit to allow for Chinese graphite

The Biden administration has eased restrictions for its electric vehicle tax credit, giving automakers more time to adjust to sourcing requirements meant to reduce reliance on China for materials.

The Treasury Department announced Friday that it has finalized rules for a tax credit that serves to encourage sales of electric vehicles while taking aim at foreign entities of concern, such as China, Russia, North Korea, and Iran, and their grip on critical minerals and EV battery components.