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Document Type

Note

Abstract

The passage of the Inflation Reduction Act (IRA) marked a step forward for the United States in incentivizing clean energy and reducing national reliance on fossil fuels. However, the IRA’s critical mineral requirement restricts the eligibility of electric vehicles for tax credits based on the origin or processing location of minerals used in electric vehicle batteries. The French territory of New Caledonia contains nickel reserves that would be invaluable to the production of electric vehicle batteries in the U.S. However, under the Inflation Reduction Act’s critical mineral requirement, the use of New Caledonian nickel in electric vehicle batteries may inhibit the ability of vehicles containing those batteries to qualify for the IRA’s tax credits. This Note argues that the U.S. should enter into a critical minerals agreement with France to remove this trade barrier with New Caledonia.

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