8 | | DECEMBER 2024IN MY OPINIONKEEPING UP WITH INCREASINGLY COMPLEX LEGAL COMPLIANCEBy John H. Kwon, General Counsel, Global Legal & Strategy, Contemporary AmperexThe manufacture and assembly of Lithium-ion (LFP) and Manganese Nickel Cobalt (MNC) cells have been severely disrupted by the passage of the Inflations Reduction Act of 2022 by the United States Congress. Under the Act, electric vehicle (EV) tax credit is no longer available for batteries sold in the United States unless the battery is assembled in the U.S. Furthermore, in order to qualify for tax credits, rare elements such as Lithium, Nickle, Cobalt, and Manganese must now be extracted or processed in the U.S., or a country with a free trade agreement with the U.S. Since the United States is still a significant market for EVs, some battery manufacturers have had to change their global strategies and invest in the construction of battery plants in the United John H. Kwon
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