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US Treasury, IRS unveil new rules on clean vehicles

The US Treasury Department and the Internal Revenue Service (IRS) on Friday unveiled new rules on clean vehicles in order to lower costs for American consumers and strengthen supply chains.

Treasury Secretary Janet Yellen said in a statement new rules will help consumers save up to $7,500 on new clean vehicles and hundreds of dollars per year on gasoline. It will, in addition, create American manufacturing jobs and strengthen energy and national security of the US.

The Treasury noted that at least $45 billion in private-sector investment has been announced across clean vehicle and battery supply chain in the US since the Inflation Reduction Act was enacted.

The Act, signed into law by President Joe Biden in August 2022, targets to curb high inflation by reducing the national deficit and aims to invest into domestic energy output via promoting clean energy.

“To be eligible for a $7,500 credit, clean vehicles must meet sourcing requirements for both the critical minerals and battery components contained in the vehicle. Vehicles that meet one of the two requirements are eligible for a $3,750 credit,” the statement said.

Many companies around the world in recent years have been in a race to develop more efficient electric vehicles, while their governments are offering subsidies.

Most recently, American carmaker Ford announced Thursday that it has entered an agreement with two companies in Asia to advance nickel production to help make manufacturing electric vehicle batteries to become more affordable.

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