
The Biden administration is seeking to bolster the United States’ domestic supply chain for electric vehicles to produce cleaner cars. However, the company Huntsman Corporation in Texas faced obstacles in making an all-American electric vehicle due to competition from China. The plant in Texas intended to produce ethylene carbonate for electric vehicle batteries was halted after China flooded the market with the product at a significantly lower price of $700 a ton from the intended $4,000. The administration now needs to finalize rules that will determine how foreign companies, particularly in China, can supply parts for American-made electric vehicles. The rules will impact whether electric vehicle makers in the U.S. are able to obtain cheap components from China or if they will be required to purchase more expensive products from American companies. The administration faces a dilemma where it must weigh the benefits of allowing more companies to qualify for incentives with the need to build secure supply chains for electric vehicles. The industry is divided over the exact requirements of the proposed rules, with automakers seeking to keep costs down while miners and others in the supply chain are hoping to reduce dependence on China and strengthen the U.S. economy. The final rules are awaited to determine the trajectory of investment in electric vehicle and battery manufacturing in the U.S.