President Biden’s Inflation Reduction Act (IRA) was passed in August 2022, but the ramifications have been so widespread that Europe is looking for a way to counter it with tax credits of its own, and the European Investment Bank wants to help by setting up a self-sustaining fund.
The IRA is a complex piece of work, but the big takeaway for the auto industry is the aim of ensuring raw materials used in EV batteries are sourced in America. From an automotive manufacturing standpoint, the main objective has always been clear. President Biden wanted to cut America’s reliance on China, and it’s working. In fact, it’s working too well, as the countries that form the European Union (EU) are investigating new ways to safeguard their piece of the industry.
This latest development comes via Reuters, quoting an interview in Der Spiegel with the president of the European Investment Bank, Werner Hoyt.