The supply of critical minerals for the energy transition, particularly electric vehicles, is the focus of new talks announced between the US and EU.
“We intend to immediately begin negotiations on a targeted critical minerals agreement for the purpose of enabling relevant critical minerals extracted or processed in the European Union to count toward requirements for clean vehicles in the Section 30D clean vehicle tax credit of the Inflation Reduction Act”— Joint Statement by President Biden and President von der Leyen
The talks come as a leaked draft of the EU’s Critical Raw Materials Act (CRMA) suggests the EU plans to set up a new agency, the European Critical Raw Materials Board, so by 2030 the EU can internally produce at least 10% and process at least 40% of strategic materials needed each year.
The talks hope to, not only encourage investment in the critical minerals strategy of the US and EU, but diffuse tensions over the impact of the Inflation Reduction Act on Europe’s green transition and economy, as well as US concerns over China’s dominance in the critical minerals space.
According to the Financial Times, more than US$90 billion in green investment has poured into the US since the Inflation Reduction Act was passed last year, including US$369 billionn worth of tax credits, loans and grants.