Japan plans joint rules with U.S., Europe on electric car, semiconductor subsidies
Oct.24,2023

Asian Tech Press (Oct 24) -- Japan plans to set common standards with the U.S. and Europe on subsidies for electric vehicles, semiconductors and other key technology sectors, Minister of Economy, Trade and Industry (METI) Yasutoshi Nishimura said Tuesday.

Discussions between the three parties could begin as early as this year, and the new framework is expected to cover areas such as government support and ensuring a stable supply of key materials, as well as investment in green transformation, Nikkei reported.

In addition, the three parties will discuss environmental and other requirements to qualify for EV subsidies.

With trade protectionism on the rise, the Japanese government viewed the discussions a way to promote a level playing field.

Just on Monday, Japanese Prime Minister Fumio Kishida similarly pledged to work to strengthen supply chains related to semiconductor and decarbonization technologies.

Countries around the world are currently working on new eligibility rules for subsidies and other incentives to attract investment and businesses in areas such as electric vehicles.

For example, the U.S. requires that an electric vehicle must have 50% of its battery components (by value) manufactured in North America in order to qualify for tax credits.

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