VW’s agreement is designed to shorten supply chains for its facilities in the US and avoid difficulties linked to tariffs and tax regulations, said one of the people. The move has partly been prompted by new rules that US President Joe Biden signed into law last week, the person added.
A spokesperson for VW said the carmaker and its dedicated unit for its battery business, called PowerCo, are working on ramping up their battery activities, “especially reliable and sustainable supply chains.”
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“This holds true for the very promising North American market as well,” the spokesperson said by email. A spokesperson for Mercedes declined to comment.
The Biden administration’s Inflation Reduction Act allows consumers to continue getting as much as $7,500 in tax credits for electric vehicles if manufacturers meet new content requirements. Minerals must be…
