US, Japan reach agreement on vital minerals for electric vehicle batteries

Japan and the United States have reached an agreement on trade in critical minerals for electric vehicle batteries, part of an effort to diversify supply chains and reduce reliance on China for strategically important resources.

The deal struck Tuesday is expected to help electric vehicles using metals processed in Japan qualify for tax incentives under President Joe Biden’s Inflation Reduction Act.

This announcement is proof of President Biden’s commitment to building resilient and secure supply chains, US Trade Representative Katherine Tai said in a statement.