# Update: What the new Treasury rules mean for EV supply chains

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2023-12-07
- Length: 46m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains

## Summary

Sam Jaffe, senior director of business development at Addionics, explains the U.S. Treasury’s new proposed rules defining 'foreign entities of concern' (FEOC) under the Inflation Reduction Act, which restricts EV tax credits for materials linked to China, Russia, North Korea, or Iran. Jaffe details how the 25% ownership threshold and specific loopholes like the de minimis rule impact the supply chain, particularly for graphite, nickel, and cobalt. He also discusses the classification of 'constituent materials' as strategic minerals, which allows sourcing from free trade agreement partners like Korea and Japan, and analyzes the implications for companies like Ford, CATL, and Tesla.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=0) Introduction and Sponsor Reads
- [6:30](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=390) Update on Foreign Entity of Concern Guidance
- [11:31](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=691) Impact on Nickel, Cobalt, and Graphite Supply Chains
- [14:43](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=883) Ford-CATL Licensing Loophole and Equipment Rules
- [18:48](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=1128) Constituent Materials and Strategic Minerals Classification
- [25:21](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=1521) Free Trade Agreements and the Korea/Japan Advantage
- [43:12](https://hardwarepodcasts.com/podcast/catalyst/2023-12-07-update-what-the-new-treasury-rules-mean-for-ev-supply-chains#t=2592) Future Uncertainty and Market Prognosis

## Topics

- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)

## Most relevant to

companies scaling up

## Mentioned

- Addionics (company)
- Ford (company)
- CATL (company)
- Tesla (company)
- LG Chem (company)
- Sumitomo Metals and Mining (company)
- Inflation Reduction Act (other)
- Greenbushes (other)

## Related episodes from other shows

- [Europe Is Writing New Rules For Chips, Defense And EV Supply Chains: Alison James, Global Electronics Association](https://hardwarepodcasts.com/podcast/ems-c-level/2026-04-14-europe-is-writing-new-rules-for-chips-defense-and-ev-supply-chains-alison-james) (EMS@C-LEVEL)
- [Electric Car Superiority | The Supply Chain is All Mine | Cookies for Calculus](https://hardwarepodcasts.com/podcast/ee-times-current/2020-07-10-electric-car-superiority-the-supply-chain-is-all-mine-cookies-for-calculus) (EE Times Current)
- [274: The Auto Rescue, Critical Minerals, and Moving Manufacturing Forward with Representative Haley Stevens](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-02-10-274-the-auto-rescue-critical-minerals-and-moving-manufacturing-forward-with-repr) (Manufacturing Happy Hour)
- [Episode 37: Updated Thoughts on Entity Lists](https://hardwarepodcasts.com/podcast/the-circuit/2023-10-09-episode-37-updated-thoughts-on-entity-lists) (The Circuit)
- [US-China Train Wreck](https://hardwarepodcasts.com/podcast/ee-times-current/2019-05-24-us-china-train-wreck) (EE Times Current)

## Citing this page

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