Ford Motor Co claimed on Thursday the U.S. Treasury Department should restrict the definition of a “foreign entity of concern” to be certain far more electric powered vehicles can qualify for up to $7,500 in buyer tax credits.

In August, Congress passed the $430 billion Inflation Reduction Act (IRA) legislation to restructure EV tax credits and, will, in the coming many years, bar credits if any EV battery factors have been produced or assembled by a “foreign entity of worry” or if batteries comprise important minerals extracted, processed, or recycled by a international entity of problem.

The rules were being aimed at weaning the United States off the Chinese battery source chain.

“Though Ford appreciates and supports the general objective of the law to bolster the localization of battery output and critical mineral mining and processing in the U.S. and with our trading partners and allies, an extremely expansive interpretation of this provision threats undermining that incredibly same goal by creating the clean up car credit score largely unavailable,” the automaker reported in comments filed with Treasury and despatched to media.

Ford mentioned it wants the Biden administration to make sure joint ventures in crucial mineral extraction, processing, or recycling “will not induce autos to be immediately excluded.” The business also stated any U.S.-arranged company, no matter of its proprietors, must not induce the foreign entity rules.

Ford also said automakers need a “de minimis normal” as part of international entity reporting requirements “so that unintended traces of important minerals do not disqualify shoppers from obtaining a tax credit score.”

Ford stated in July it prepared to import decreased-value lithium ion batteries for its North American electrical pickup vans and SUVs from Chinese battery large CATL.

The IRA requires automakers to have 50% of crucial minerals applied in batteries sourced from North The usa or American allies by 2024, increasing to 80% by the end of 2026. The foreign entity limits utilize to automobile battery parts commencing in 2024 and battery minerals commencing in 2025.

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