IRS Critical Mineral Rules Thwart Bid to Rival China, Firms Say

Proposed IRS rules excluding domestic critical mineral extraction and certain processing costs from advanced manufacturing credits threaten to undermine US efforts to challenge China’s dominance of the minerals used to make electric vehicles and other green technology, companies said during an IRS hearing Thursday.

Known as Section 45X of the Democrats’ 2022 tax-and-climate law, the credits aim to encourage production of green energy components and technology to boost US supply chains. In proposed guidance, IRS late last year said critical minerals extraction activities and certain processing costs would be excluded from eligibility for credits.

Piedmont Lithium Executive Vice President Austin ...