According to Bloomberg, Associated Press, and other reports, on December 1st local time, the US Treasury Department announced that starting next year, electric vehicles produced in the United States that include battery components manufactured or assembled in countries such as China will no longer be eligible for tax credits of up to $7500 (note: currently approximately RMB 53550) provided by the US Inflation Reduction Act (IRA).

　　According to new regulations, starting from 2024, US clean vehicles that meet tax exemption requirements cannot include battery components manufactured or assembled by Foreign Entity of Concern (FEOC).

　　In addition, after 2025, compliant vehicles must not contain key minerals such as nickel and lithium extracted, processed, or recycled by such entities.

　　The report states that this new regulation targets companies from countries such as China, Russia, and Iran.

　　If a company or group is registered and established in these countries, or its state-owned portion reaches the 25% threshold, it will be considered a Foreign Entity of Concern (FEOC).

　　The Inflation Reduction Act, released in August last year, provides a federal tax credit of $7500 for electric vehicles assembled in North America, but has strict standards for key minerals, components, and other sources in car batteries.

　　Starting from 2023, electric vehicles must have more than 50% of their battery components and materials manufactured or assembled in North America to qualify for a $3750 tax credit per vehicle. This proportion needs to reach 100% after 2029.

　　According to The New York Times, many provisions previously enacted by the Inflation Reduction Act have caused a large number of new energy vehicles to lose their eligibility for tax credits.

　　For example, currently only about 20 out of every 100 cars sold in the United States meet the requirement for assembly in North America.