US to spend more than $3bn on electric vehicle battery manufacturing, White House says

The Biden administration plans to allocate more than $3 billion in infrastructure funding to finance electric vehicle (EV) battery manufacturing.

The funds will be allocated by the Department of Energy from the $1 trillion infrastructure bill President Joe Biden signed last year.

Among the initiatives will be the processing of minerals for use in large-capacity batteries and recycling those batteries, the agency said.

Mr Biden wants half of all new vehicles sold in the US to be electric by 2030, a goal he hopes will boost unionised manufacturing jobs in key election battleground states, help the US to compete with China in the fast-growing market and reduce carbon emissions.

His administration will also position the measures as a way to secure energy independence and cut long-term inflation exacerbated by Russia's invasion of Ukraine.

"As we face this Putin price hike on oil and gas, it's also important to note that electric vehicles will be cheaper over the long-haul for American families," said Mitch Landrieu, the White House infrastructure co-ordinator, referring to Russian President Vladimir Putin.

“This investment will strengthen our domestic battery supply chain, create jobs and help US manufacturers compete on the global stage,” said Steven Croley, the company's general counsel.

"We have a moment of opportunity to own this technology here in the US, and investments like the one announced today will help us to get there.”

The latest funding will help to establish and retrofit battery factories. The infrastructure law also allocated billions of dollars for the government to purchase electric buses and install EV chargers.

The Biden administration has been working with business leaders, including Tesla chief executive Elon Musk, General Motors chief executive Mary Barra and Ford chief Jim Farley.

But the funds will not go towards developing new domestic mines to produce the lithium, nickel, cobalt and other high-demand minerals needed to make batteries. Some of those projects face local opposition and are tied up in environmental and legal reviews being conducted by the Biden administration.

"These resources are about the battery supply chain, which includes producing and recycling critical minerals without new extraction or mining. That's why we're all pretty excited about this," said Gina McCarthy, the White House's national climate adviser.

In March, Mr Biden invoked the Cold War-era Defence Production Act to support the production and processing of those minerals

He requested funding to support that initiative last week as part of a $33bn package on initiatives related to the Ukraine conflict.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

US to spend more than $3bn on electric vehicle battery manufacturing, White House says

President Joe Biden wants half of all new vehicles sold in the US to be electric by 2030

Ten tax points to be aware of in 2026