U.S. gives 2-year grace period until IRA battery regulations take effect

The U.S. has granted a two-year grace period before enforcing new battery material regulations under the Inflation Reduction Act (IRA), allowing Korean battery manufacturers until the end of 2026 to find alternative sources for essential EV minerals like graphite, which is predominantly sourced from China. This move comes as part of the IRA's provision offering up to $7,500 in tax credits for EVs, contingent on compliance with certain material sourcing and component manufacturing standards. The revised guidelines also eliminate a previous requirement that 50% of key minerals come from the U.S. or its trade partners, now focusing instead on the proportion of value generated from these regions.