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According to a recent study, China controls the supply chain for the raw materials required to make batteries, therefore President Joe Biden’s tax incentives for American-made electric vehicles are “running into a problem.”

Last year, Democrats in the House and Senate passed Biden’s Inflation Reduction Act, which provides thousands of dollars from tax credits to American consumers who purchase electric vehicles built in the United States, Mexico, and Canada.

Now, according to Axios, Biden’s tax incentives for electric vehicles “to stimulate domestic production of batteries is running across a problem: Some essential raw materials are only accessible abroad, and China controls most of the supply.”

China, in particular, dominates a number of raw resources used to build batteries for electric vehicles, including graphite, lithium, and cobalt. China, for example, is expected to control around one-third of the world’s lithium supply by 2025.

Some automakers, such as Stellantis CEO Carlos Tavares, are hopeful that the Chinese raw materials problem would strengthen the free trade consensus between DC’s lawmakers, as they caution against economic nationalist measures that favor domestic companies.

Tavares told Axios, “There are many traps. The world appears to be fragmenting, and global trade is regressing.”

China’s supremacy in the market for electric vehicles has already manifested itself in Michigan, where Governor Gretchen Whitmer (D) welcomed the opening of a $3.5 billion battery factory in Marshall, MI as part of a partnership between Ford and China’s Contemporary Amperex Tech Co. (CATL).

CATL is China’s leading provider of electric vehicle batteries, and it benefits greatly from subsidies administered by the Chinese Communist Party. (CCP). Despite China’s direct engagement in the factory, Ford is expecting government subsidies via Biden’s tax credits.

CATL CEO Zeng Yuqun has extensive ties to the CCP, as Breitbart News exposed in February. Yuqun serves as a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), a prominent CCP advisory group that is a key component of the party’s “United Front” initiatives.

According to the federal government, China’s “United Front” initiatives are a front for CCP intelligence activities abroad.

Senator Marco Rubio (R-FL) has since sent a letter to Biden’s senior officials, pleading with them to prohibit taxpayer assistance to Ford because of its arrangement with CATL.

“If Chinese companies like CATL can exploit both Chinese and US subsidies for batteries and technology for electric vehicles through sophisticated business arrangements,” Rubio wrote, “then there is no point in spending federal funds in manufacturing growth in the first place.”

Author: Scott Dowdy

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