Yellen visits NC lithium plant to support Biden’s economic plan
TL/DR –
U.S. Treasury Secretary Janet Yellen is promoting new clean energy investments enabled by U.S. tax incentives as President Joe Biden struggles to earn voter recognition for the benefits. Yellen is touring a facility in North Carolina that processes lithium hydroxide, used in electric vehicle batteries. She highlighted that $614 billion worth of clean energy investments and manufacturing projects have been announced since the Biden administration took office in 2021, much of this due to tax credits in the inflation reduction act.
Janet Yellen Promotes Clean Energy Investments
On Nov 30, U.S. Treasury Secretary, Janet Yellen, will visit North Carolina to highlight the new clean energy investments made possible through U.S. tax incentives. This move comes as President Joe Biden’s administration seeks to improve public perception of their economic policies.
Yellen’s itinerary includes a tour of a (LTHM.N) Livent Corp facility in Bessemer City. This plant, which processes lithium hydroxide for electric vehicle (EV) batteries, is increasing its capacity due to growing EV demand, spurred by consumer tax credits from the 2022 Inflation Reduction Act.
In her prepared remarks, Yellen highlights nation-wide clean energy investments worth $614 billion. These include $142 billion in EVs and batteries and $71 billion in clean energy manufacturing, largely enabled by tax credits in the inflation reduction act.
“We’re witnessing a battery belt emergence across the Midwest and South,” Yellen said. This development aids U.S. energy security by reducing reliance on China’s EV battery supply chain.
The Biden administration is anticipated to release new guidelines on permissible levels of Chinese content in EV batteries that can qualify for IRA tax credits in the coming days. The Livent plant processes lithium brine mainly from Argentina and Canada.
According to Yellen, the majority of investments triggered by the legislation are flowing into counties with below-average college graduation rates, creating “good jobs where they are most needed.”
Continued Economic Growth Amid Public Discontent
Increased investment in new manufacturing projects, machinery, and warehouses has contributed to the U.S. economy’s robust 5.2% annual growth rate in the third quarter, contradicting earlier recession predictions.
However, Biden has struggled to gain voter confidence in his economic leadership, with recent polls favoring Republican contender Donald Trump in five of the six most crucial battleground states.
Consumers remain burdened by the increased cost of living due to post-pandemic inflation. Larry Sabato, director of the University of Virginia’s Center for Politics, suggests it will take time for individuals to experience the benefits of higher wages amidst persistent high prices.
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