Japan, US strike deal on materials for electric vehicles
The Japanese Ministry of Industry announced on Tuesday that Japan and the United States have reached an agreement to facilitate the supply of minerals used in the manufacture of electric vehicles.
Once signed, the agreement will allow Japan to benefit from the Inflation Reduction Act, which requires a certain amount of critical minerals in EV batteries to be sourced domestically or from free trade agreement partners.
The agreement will treat Japan as a preferred trading partner for minerals such as lithium, nickel, cobalt, graphite, and manganese used in EV battery production. The goal is to build resilient supply chains in cooperation with the United States and other nations to secure critical minerals for EV battery production.
Further details, including benefits for the Japanese industry and the date of signing the agreement, will be made public by the US Treasury Department. The agreement aims to reduce dependence on raw materials for EV batteries from China and promote collaboration to control investments from third countries in their respective supply chains.