According to the statement made by the US Trade Representative (USTR), an agreement was signed between Japan and the US to strengthen the supply chains of critical minerals.
The agreement aims to strengthen and diversify supply chains of critical minerals and encourage the adoption of electric vehicle battery technologies.
Stating that the agreement aims to facilitate the trade of critical minerals, it was emphasized that fair competition and market-oriented conditions will be encouraged in the trade of these minerals.
US Trade Representative Katherine Tai stated that the agreement in question is proof of US President Joe Biden’s commitment to creating resilient and secure supply chains.
Stating that Japan is one of the most valuable trading partners of the USA, Tai said that the agreement will deepen the existing relations between the two countries.
The agreement is expected to help electric vehicles using minerals processed in Japan benefit from tax incentives provided under the U.S. Inflation Reduction Act.
The United States announced at the beginning of March that it would begin negotiations with the European Union (EU) to reach an agreement on critical minerals mined or processed in Europe to include them in the US’s tax relief requirements for electric vehicles under the Inflation Reduction Act.
In the joint statement made by the USA and the EU, it was stated that cooperation on the diversification of critical mineral and battery supply chains would be deepened.
The Inflation Reduction Act, approved by US President Joe Biden in August last year and seen as the “biggest climate package” in US history, will reduce taxes up to $7,500 for electric vehicles using batteries produced in North America and containing minerals extracted from the mines in this region. provides for delivery.