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"The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50%

"The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs." Japanese and European car manufacturers can just source batteries from somewhere else other than China, then problem solved. Car/electronics manufacturers are already moving out of China at a rapid pace this year anyways. According to the office for national statistics in China, for jan/feb of 2023 http://www.ce.cn/xwzx/gnsz/gdxw/202303/27/t20230327_38464161.shtml http://www.ce.cn/xwzx/gnsz/gdxw/202303/27/t20230327_38464161..., electronics manufacturing profits is down 71% and car manufacturing profits is down 41.7%, due to slacking demand. Smart to move sourcing early anyways, it looks like China is starting to be confirmed to help Russia militarily https://www.reuters.com/world/europe/ukraine-says-it-is-finding-more-chinese-components-russian-weapons-2023-04-14/ https://www.reuters.com/world/europe/ukraine-says-it-is-find... Actually, it would appear that Chinese EV manufacturers have not much place to go. EV market in China peaked at 2021. With regards to Europe, BYD only sold tens(!!) of cars in Germany in 2023, compared to thousands of Tesla cars sold.

alistairSH 3y ago
Japanese and European car manufacturers can just source batteries from somewhere else other than China, then problem solved. I believe the regulations explicitly call for a % of battery components to be US/NA-sourced. So, it's not just "ditch China" but also "buy American."
- marianatom 3y ago
  You're making money off Americans. Giving some investments to create jobs for Americans make sense. Henry Ford famously overpaid his workers to create demand for his cars https://www.npr.org/2014/01/27/267145552/the-middle-class-took-off-100-years-ago-thanks-to-henry-ford https://www.npr.org/2014/01/27/267145552/the-middle-class-to...
  - mikestew 3y ago
    The link you supplied belies the myth that Ford paid his workers such that they could buy his cars. Ford paid his workers what he did so that he could get more reliable, productive workers.
KennyBlanken 3y ago
There's no EV battery supply chain in the US, just like there's no real solar supply chain. You can't just snap your fingers and say "OK, subsidies only for US made batteries!" when there is little industry and ramping it up would take many years. The policy is just a way of "soft" killing the subsidies.

alistairSH 3y ago

Japanese and European car manufacturers can just source batteries from somewhere else other than China, then problem solved. I believe the regulations explicitly call for a % of battery components to be US/NA-sourced. So, it's not just "ditch China" but also "buy American."

marianatom 3y ago
You're making money off Americans. Giving some investments to create jobs for Americans make sense. Henry Ford famously overpaid his workers to create demand for his cars https://www.npr.org/2014/01/27/267145552/the-middle-class-took-off-100-years-ago-thanks-to-henry-ford https://www.npr.org/2014/01/27/267145552/the-middle-class-to...
- mikestew 3y ago
  The link you supplied belies the myth that Ford paid his workers such that they could buy his cars. Ford paid his workers what he did so that he could get more reliable, productive workers.

KennyBlanken 3y ago

There's no EV battery supply chain in the US, just like there's no real solar supply chain. You can't just snap your fingers and say "OK, subsidies only for US made batteries!" when there is little industry and ramping it up would take many years. The policy is just a way of "soft" killing the subsidies.