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US draft rules may disqualify Australian critical minerals from IRA subsidies

A number of Australian critical mineral producers will likely be ineligible for US Inflation Reduction Act (IRA) subsidies, as the US government has published draft rules forbidding access to enterprises with stakes held by Chinese investors.
Bella Peacock
By
Bella Peacock
Australian Prime Minister Anthony Albanese and US President Joe Biden | Image: Anthony Albanese

From pv magazine Australia

New draft rules from the US Department of Energy state that enterprises “owned by, controlled by, or subject to the jurisdiction or direction” of China, Russia, North Korea or Iran, will not be eligible for subsidies under the nation’s USD 369 billion ($550 billion) IRA, nor the USD 550 billion Infrastructure and Jobs Act.

The upper limit of both direct stakes or “cumulative” investment is 25%, according to the draft guidance.

China is far and away Australia’s biggest trade partner, including for lithium and other critical minerals. China’s dominance in the sector has meant that a number of Australian projects have substantial Chinese ties. These ties come in the form of Chinese project ownership, investment, and off-take agreements.

For instance, Western Australian project Greenbushes, which produces most of Australia’s lithium, is owned by Chinese company Tianqi and US giant Albermarle. Tianqi also holds a majority stake in the Kwinana lithium hydroxide refinery, which produced Australia’s first commercial quantities of battery-grade lithium hydroxide in 2022.

To continue reading, please visit our pv magazine Australia website. 

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