These conditions for awarding the $7,500 grant for the purchase of a new electric vehicle were particularly expected in Japan and Europe, which could only welcome the proposals published by the Treasury Department.

Initially planned for the beginning of the year and the subject of deep concern both on the side of the European Union (EU) and the Asian allies of the United States - Japan and South Korea in the lead--, these proposals were seen as a sign that the Biden administration has taken into account the fears expressed by its partners.

However, as part of the law passed last summer, these subsidies were conceived both as a way to accelerate the conversion of Americans to electric vehicles and to support the development in the country of an industry in this area, especially concerning the manufacture of batteries.

The plan, fought hard after tough negotiations with Democratic Senator Joe Manchin of West Virginia, who had initially opposed it and whose voice was decisive, provided that a preponderant share of the vehicle and battery should come from North America.

However, the conditions published by the Treasury Department, which will come into force in April, largely open up the origin of both the vehicles and the critical materials needed for the batteries or the batteries themselves.

Submitted for consultation before final validation, they also concern states bound by a free trade agreement, "a term that includes recently negotiated agreements relating to critical materials," the Treasury said in a statement.

A total of 21 countries are involved, including Japan, which on Monday signed an agreement specifically on "supply chains for critical minerals and batteries for electric vehicles".

If not yet on the list, the EU hopes to sign a similar agreement soon, as negotiations officially began during European Commission President Ursula von der Leyen's visit to Washington on March 10.

"Respect the law"

Currently in the US capital, European Commissioner Margrethe Vestager reminded the press on Thursday that "it is difficult to fight global warming if we do not have a zero-carbon industry everywhere", not only in the United States.

"What we are trying to avoid is that the acceleration we want to give in Europe is not potentially stopped by the acceleration that the United States wants to experience," Vestager insisted.

US Senator Joe Manchin in Washington on March 2, 2023 © Stefani Reynolds / AFP

But Senator Manchin did not hide his anger at the published conditions. He said in a statement Friday that they "totally ignore the IRA's goal," which is "to bring industries back to the United States and ensure we have safe and strong supply chains."

"U.S. public money should not be used to support manufacturing jobs abroad. The consultation period is open, and I invite every American to speak. My advice is simple: stop me, obey the law," the Democratic senator added.

If they seem to be more open than anticipated, the conditions of attribution specify that they exclude on the other hand, as was provided for during the vote of the law, "suspicious entities", a term that includes in particular Chinese companies.

"Given China's leadership in the clean energy value chain, we need to work with our allies and partners to build a strong supply chain that can meet the expectations of the U.S. consumer," a Treasury official said in a phone call.

The idea is in line with the position defended by the European Commission, which has called for this approach to be extended beyond the G7 countries and to countries producing critical materials, which currently export mainly to China. These materials include nickel or cobalt, which are used to make batteries.

Consultations on grant conditions are open until 17 April.

© 2023 AFP