KONTAN.CO.ID - JAKARTA. Indonesia will propose a free trade agreement for some minerals shipped to the United States so that companies in the electric vehicle battery supply chain operating in the country can benefit from U.S. tax credits, a senior minister said on Monday. Washington has issued a new guidance for EV tax credits under the Inflation Reduction Act (IRA), requiring a certain value of battery components to be produced or assembled in North America or a free trade partner. The rules are aimed at weaning the United States off dependence on China for the development of its EV battery supply chain. Indonesia does not have a free trade agreement with the United States, but its nickel products have increasingly become important in the supply chain.
Indonesia to Propose Limited Free Trade Deal with US on Critical Minerals
KONTAN.CO.ID - JAKARTA. Indonesia will propose a free trade agreement for some minerals shipped to the United States so that companies in the electric vehicle battery supply chain operating in the country can benefit from U.S. tax credits, a senior minister said on Monday. Washington has issued a new guidance for EV tax credits under the Inflation Reduction Act (IRA), requiring a certain value of battery components to be produced or assembled in North America or a free trade partner. The rules are aimed at weaning the United States off dependence on China for the development of its EV battery supply chain. Indonesia does not have a free trade agreement with the United States, but its nickel products have increasingly become important in the supply chain.