EU Trade Chief Continues US Battery Mineral Talks Amid Differences
TL/DR –
The US and the EU failed to reach a trade agreement for battery minerals during bilateral talks in Washington. Despite not specifying a deadline, European Commission Executive Vice President Valdis Dombrovskis said they are committed to continuing negotiations to form a transatlantic marketplace for minerals and other components. The battery minerals trade agreement would allow European companies to benefit from US tax credits for electric vehicles.
U.S. and EU Delaying Trade Deal for Battery Minerals, Engagement Continues
The U.S. and EU were unable to finalize a trade deal for critical battery minerals on Tuesday. Despite the setback, the EU’s top trade official confirmed their commitment to creating a transatlantic marketplace for minerals and other components.
EU’s European Commission Executive Vice President, Valdis Dombrovskis, communicated that “outstanding issues” remained on the European side. These issues are predominantly related to the U.S. green energy subsidy law, the Inflation Reduction Act, which the EU perceives as discriminatory.
The focus of the discussion was the battery minerals trade agreement. The agreement is seen as beneficial for European companies who could tap into the U.S. tax credits for electric vehicles. The discussion took place at the fifth ministerial meeting of the U.S.-EU Trade and Technology Council.
Dombrovskis refrained from setting specific targets or deadlines, emphasizing that the issue aligns with their broader agenda of resilient supply chains and the greening of the economy. He further stated that despite differences, they are determined to continue engagement and reach a comprehensive agreement.
The TTC meeting concluded without a joint statement. The TTC was launched in 2021 to foster cooperation on strengthening semiconductor supply chains, regulating big tech firms, and addressing China’s non-market trade practices.
A sixth ministerial meeting is set to occur in Belgium in April, possibly the last one before the U.S. and EU national elections. The U.S. and EU had planned to initiate battery minerals talks in March 2023 due to concerns that the Inflation Reduction Act, offering tax credits for U.S. clean energy investments, could divert projects from Europe.
Meanwhile, the U.S. secured a minerals agreement with Japan last March. The U.S. Trade Representative’s office has yet to comment on the matter.
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