The U.S. Treasury Department announced on October 24, 2024, that it will allow certain mining companies to access the 45X tax credit, a measure designed to boost American production of clean energy components. This policy shift follows industry pressure and aims to strengthen domestic supply chains for critical minerals.
The 45X tax credit, established by President Joe Biden's 2022 Inflation Reduction Act, offers a 10% production credit for U.S.-made products. This inclusion for mining companies is crucial for projects like Lithium Americas' Thacker Pass, which is positioned to supply the domestic electric vehicle market.
This regulatory action is expected to support the development of U.S. lithium production, reducing reliance on foreign suppliers and advancing the clean energy transition. It provides a tangible financial benefit for companies investing in domestic critical mineral extraction and processing.
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