US President Joe Biden and European Commission President Ursula von der Leyen on Friday expressed their intention to begin UE-US talks aimed at working out an agreement on a key raw materials, such as those used in making car batteries.
"We intend to immediately begin negotiations on a targeted critical minerals agreement for the purpose of enabling relevant critical minerals extracted or processed in the European Union to count toward requirements for clean vehicles" in the "clean vehicle tax credit of the Inflation Reduction Act," they said on Friday in a joint statement.
Such an agreement would make it possible for electric cars produced in Europe to enjoy the same benefits as those produced in the US.
EU countries are concerned about the subsidies included in the Inflation Reduction Act, the major US climate plan that provides for $370 billion in investments to combat climate change.
They are worried, among other things, that the subsidies and tax breaks will distort competition.
The statement appeared to address such fears.
"Today, the United States and the European Commission announced the launch of the Clean Energy Incentives Dialogue to coordinate our respective incentive programs so that they are mutually reinforcing," Biden and von der Leyen said in their statement.
"Both sides will take steps to avoid any disruptions in transatlantic trade and investment flows that could arise from their respective incentives," they added.
"We are working against zero-sum competition so that our incentives maximize clean energy deployment and jobs—and do not lead to windfalls for private interests," they said.