Proposed US rule for electric vehicles could shut out Australia’s critical minerals

In April, the US Department of the Treasury and the Internal Revenue Service (IRS) proposed a rule relating to the ‘new clean vehicle credit’ under the Inflation Reduction Act. The proposal would provide a tax credit of up to US$3,750 for American taxpayers who purchase an electric vehicle (EV) if a certain percentage of the value of the EV battery’s critical minerals are extracted or processed in the US, free-trade agreement countries (such as Australia) or countries…