US and Japan make trade deal for battery minerals ahead of IRS decision
The United States and Japan have struck a trade deal for battery minerals, according to Reuters. This deal could potentially allow Japanese electric cars greater access to US EV tax credits in the Inflation Reduction Act.
The Inflation Reduction Act, passed in August, included big changes to how the US federal EV tax credit works. One of those changes involves restricting credit availability to vehicles that are assembled in North America, with additional requirements based on where battery components and critical minerals are sourced.
The bill requires that a minimum percentage of EV battery components be built in North America and that “critical minerals” in an EV’s battery be extracted or processed in the US or in a country with which the US has a free trade agreement. This minimum percentage will increase each year.
These requirements went into place rather suddenly – the final assembly provision went into effect immediately, and the battery sourcing provisions were set to go into effect in December. Their implementation was pushed back until March, and the Treasury should announce those guidelines by the end of this week.
This sudden implementation rankled the international community, with foreign automakers and governments decrying it as a protectionist move. Since then, perhaps to smooth over these complaints, the IRS has suggested that foreign-assembled cars could still qualify if they’re leased, an interpretation that was pushed for by South Korean automakers. Though the famously anti-EV Toyota opposed that interpretation, even though the company would benefit from it.
Today, it looks as if Japan has found a different way around these requirements, or at least one of them, by signing a narrow free trade agreement with the US solely for battery critical minerals. The agreement was signed by US trade representative Katherine Tai and Japanese ambassador to the US Koji Tomita.
So today’s agreement will potentially add Japan to the list of free trade countries that can extract or process the critical minerals in EV batteries.
The US is currently negotiating separately with the European Union for a similar agreement, though that has not yet born fruit. We may learn more about it in the coming days or weeks, since the deadline for the Treasury’s decision is fast approaching.
However, all of these agreements are contingent on the Treasury’s interpretation of the bill. In the bill itself, the language specifies “any country with which the United States has a free trade agreement in effect.”
The full list of US free trade countries is available here, and does not include Japan. Japan and the US do not actually have a full free trade agreement. The countries agreed in 2019 to implement some free trade measures in agricultural and industrial goods, and intend to pursue an expanded free trade agreement, but this has not been agreed to yet.
So it’s up to the Treasury now to decide if this new agreement counts under its interpretation of what a “free trade agreement” is. Which we should learn more about this week.
Electrek’s Take
Well, this is an interesting last-minute development.
It was fair for other countries to be annoyed by the speed with which the Inflation Reduction Act went into effect, as it takes time to plan and build battery and car factories, and the US government should have given more lead time. However, given the difficult situation in Congress, with one party presenting a unified front acting against any sort of climate action or environmental stewardship, we got the bill we could get.
So agreements like this seem like a good way to help lessen the blow of the bill, and perhaps to repair the wounded relationships between the US and its allies due to the way the bill was implemented. In the end, it’s the biggest climate action bill ever passed by any nation, and on the world stage that should be commended, as long as we can make other countries feel like they’re being treated fairly.
But it’s also interesting that this is happening with Japan, and not other countries that have shown… a little more interest in EVs. I would have expected an agreement like this to happen faster with Korea, which is home to three large battery suppliers, LG, Samsung SDI and SK On. But perhaps that’s what we’ll hear about next.
Not to spend too much time on my “Japan is falling way behind on EVs” horse, but currently the country doesn’t have a lot of battery vehicles to offer. Panasonic is a major battery supplier, but many of its battery operations are in Nevada in cooperation with Tesla, and Tesla’s minerals (for Li-ion batteries, at least) are largely sourced from Australia and Canada. And Japan is not known to have significant reserves of battery critical minerals, though they have discovered some deep-sea deposits within Japanese territory that could potentially be exploited. Japan could also still process minerals extracted overseas, which would then qualify due to being processed in a free trade country.
Or, maybe we can hope that this is a signal of change on the part of the Japanese auto industry, and that they are finally turning more toward EVs. We’ve seen some moves in this direction – the new CEOs of both Honda and Toyota are finally recognizing that more action is needed on EVs. So removing this roadblock might help, in some small way.
Photo: US President Biden hosts Japan PM Kishida at the White House, May 2022. License
FTC: We use income earning auto affiliate links. More.
The redesigned 2026 Genesis GV70 EV is arriving with significant discounts of up to $14,000. Genesis upgraded the luxury electric SUV with a longer driving range and a refined design, both inside and out. Here’s how you can score some savings.
Genesis introduces 2026 GV70 EV discounts
After launching the updated model in Korea earlier this year, the new GV70 EV is now arriving in the US. The new 2026 Genesis Electrified GV70 is an improvement in nearly every way compared to the outgoing model.
Like the gas-powered model, the EV version features a revamped design with a new Crest grille, a revised bumper, and MLA technology added to the Two-Tone headlights.
Inside, the GV70 EV has been “reborn” with more space and luxury. A new 27″ screen combines the infotainment and driver display, while the climate control now has a separate screen. Other premium features like the crystal electronic shift dial remain.
Powered by a larger 84 kWh battery, the new GV70 EV offers a driving range of up to 423 km (263 miles) in Korea, an increase from 400 km (249 miles) in the outgoing model with a 77.4 kWh battery.
Although US specs have yet to be announced, the 2026 model is expected to feature slightly more driving range than the current 236-mile EPA rating for the 2025 GV70. It’s expected to provide closer to 250 miles of range. It will also include an NACS port for charging at Tesla Superchargers.
According to a recent note sent to dealers viewed by CarsDirect, the 2026 Genesis GV70 EV is already available with discounts of up to $14,000 for a 24-month lease.
The savings vary by trim, with up to $3,500 in lease cash available on the Standard trim and up to $ 5,250 on the Advanced trim. Meanwhile, the range-topping Prestige trim features up to $14,000 in lease cash discounts.
Although the discount is significantly higher, the Prestige model also has a higher lease rate of 5.4% compared to 0.1% for the Advanced trim.
If you choose the 36-month loan, lease cash drops to just $500 for the Advanced and $3,250 for the Prestige. The base Standard trim offers no lease cash, but has a lease rate close to 0%. Other special finance rates include 5.99% APR for 60 months and 6.49% for 72-month loans.
The national lease offer is $679 for 36 months based on the Standard trim with an MSRP of $65,830. With $5,999 due at signing, the effective monthly cost is $845. The offer ends on April 30.
If you’re looking for a cheaper lease option, the upgraded 2025 Hyundai IONIQ 5 is one of the most affordable EV lease deals right now. It starts at just $199 for 24 months with $3,999 due at signing.
Ready to score some savings while they are still here? We can help you get started. You can use our links below to find deals on the Genesis GV70 EV and Hyundai IONIQ 5 in your area.
FTC: We use income earning auto affiliate links. More.
The 2025 edition of the ACT Expo hasn’t even started yet, but there’s already at least one big takeaway wort talking about: the Tesla-fighting Windrose electric semi truck from China Belgium is not coming to America … it’s already here. And it’s already in customers’ hands.
The Chinese Belgian heavy truck manufacturer announced plans to build its R700 Class 8 electric truck in the US in a bid to sidestep the heavy tariffs and trade restrictions on imported HDEVs last year – and last week, the company delivered the first-ever all electric, long-haul sleeper truck to a US fleet customer.
The trucks are deployed by JoyRide Logistics, a Phoenix-based carrier and the first US regional trucking company to operate fully electric sleeper trucks on long (-ish) distance routes that include overnight drives. The initial rollout is happening in Arizona, California, and Nevada, with nationwide expansion already “in sight,” according to both companies.
“This isn’t just a prototype or promise-this is a fully operational, long-range electric truck that’s ready to haul freight today,” says Wen Han, founder and CEO of Windrose. “We’ve validated our technology globally and are proud to bring it to the US – one of the most important logistics markets in the world.”
Meeting the needs
JoyRide Logistics LLC partners with a number of its Fortune 500 customers, many of whom have public ESG goals and are actively working to reduce Scope 3 emissions. The integration of the Windrose R700 electric semis into their fleets is a targeted effort to help achieve their stated sustainability goals.
“Partnering with Windrose allows us to stay ahead-not just on sustainability, but on total operational performance,” said Adis Danan, President at JoyRide Logistics. “We’re talking fuel savings, reduced maintenance, and a future-ready fleet that our customers can get behind. We want to make electric logistics efficient, scalable-and cool.”
Windrose brought one of its all-electric R700 Class 8 trucks to this year’s ACT Expo, giving journalists and fleet buyers a chance to see the truck first hand. At last year’s show, Windrose impressed with a preproduction truck featuring what appeared to be a slick UI, well-finished interior, and solid construction.
The R700 packs a 729 kWh battery is reportedly good for about 420 miles of range on a single charge with a full, 49 ton GVW. The company has shown concepts (some renderings, some mules) in long-haul, severe duty, and dump body configurations.
Windrose is backed by HSBC, Citi, Fountainvest, GSR Ventures, HITE Hedge, Goodman Group, and other world-renowned investors, and has now worked with Decathlon, Remy Cointreau, Nestle Wyeth Nutrition, and many other top brands. Watch this space for more.
Electrek’s Take
In a bid to shake the “Chinese truck” stigmas in the west, Windrose has moved its corporate offices and is now based in Antwerp, Belgium – but it doesn’t matter if they say they’re based on Venus. The fact remains they have a capable, competent battery electric sleeper truck in the US and in customers’ hands right now … and they are absolutely full speed ahead.
SOURCE | IMAGES: Windrose; via Access Newswire, CleanTrucking.
FTC: We use income earning auto affiliate links. More.
Toyota is preparing to launch two new electric vehicles in China by mid-2026. The flagship Toyota bZ7 and Lexus ES are part of Toyota’s effort to regain market share from domestic electric vehicle (EV) leaders like BYD. Here’s our first look at the sleek new electric cars.
Meet the new Toyota bZ7 and Lexus ES EVs
At Auto Shanghai 2025 last week, Toyota announced plans to expand its electric vehicle (EV) lineup in China. According to Toyota, China is a “highly advanced market that leads the way in electrification.”
To keep pace, Toyota unveiled its new flagship electric sedan, the bZ7. The new bZ7 was developed locally with Guangzhou Automobile Group (GAC), Guangzhou Toyota Motor Co, and Intelligent ElectroMobility R&D Center by TOYOTA.
The bZ7 is over 5 meters long and will compete with the BYD Han L, Tesla Model S, BMW i5, and other premium EV models in China.
Toyota said the electric sedan will feature its “safe, reliable, and high-quality manufacturing” while infusing “China’s advanced tech.”
Although no other details were offered, Toyota said its new flagship EV will be equipped with the latest intelligent tech and is expected to launch within a year. The bZ7 will join the bZ4X, bZ3, bZ3X, and bZ5 in Toyota’s expanding EV lineup for China.
Toyota also unveiled the new Lexus ES at the event. The new model will be the first next-gen Lexus with EV and HEV powertrain options.
The eighth-gen ES is based on the LF-ZC concept, marking the beginning of the next generation of Lexus. The EV version will be available with FWD and AWD powertrain options, offering driving ranges of up to 685 km (425 miles) and 610 km (379 miles) on the CLTC cycle, respectively.
Inside, Lexus said the ES will debut with the world’s first Responsive Hidden Switches, which “seamlessly blends physical controls into the interior” for added convenience. It will also include a Lexus-first, Sensory Concierge, for a personalized in-car experience.
Lexus’ new electric sedan is 5,140 mm long, 1,920 mm wide, and 1,560 mm tall, approximately the same size as BYD’s Han L model (5,050 mm long, 1,960 mm wide, and 1,505 mm tall).
The ES is the second of three new Lexus electric vehicles set to debut by March 2026. It will follow the RZ and UX in the luxury brand’s EV lineup for China.
What are your thoughts on the new Toyota bZ7 and Lexus ES? Can they compete in China’s intensifying EV market? Let us know in the comments below.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway