USA-Japan Battery Mine Cooperation

The US and Japan sign a trade agreement for minerals used in electric vehicle batteries, while this cooperation will allow the two countries to improve their electric vehicle battery supply chain and allow Japanese vehicle manufacturers to benefit from US electric vehicle incentives.

Stating that the two countries quickly reconciled, US officials claimed that both countries agreed that mines used in electric vehicle batteries cannot be subject to export restrictions within the scope of the agreement. The minerals covered by the agreement include lithium, nickel, cobalt, graphite and manganese.

Under the agreement, the two countries will cooperate in reviewing foreign investment in the supply chain of critical minerals and will work together to combat “anti-market policies and practices.” Therefore, the US and Japan will try to reduce their dependence on China for mines.

Countries close to the US can benefit from incentives and tax reductions in the US auto market through mining trade agreements. The US offers a $7,500 tax deduction for each new electric vehicle sold under the anti-inflation law passed last year. (Reuters)