Foreign Companies Ranked In Billions Of Subsidies Through Biden’s 2022 Green Energy Bill!

According to an analysis by The Wall Street Journal, foreign companies, particularly from South Korea, Japan, and China, are set to receive billions of dollars in subsidies through President Joe Biden‘s green energy bill, the Inflation Reduction Act (IRA).

Foreign Companies Ranked In Billions Of Subsidies Through Biden’s 2022 Green Energy Bill! (PHOTO: The Wall Street Journal)

Foreign Companies Ranked In Billions Of Subsidies

The WSJ examined 140 green energy-related projects, totaling approximately $110 billion in investments, that are eligible for subsidies under the IRA, Daily Caller reported. The bill is expected to provide around $1.2 trillion in incentives for green energy development over the next decade, potentially leading to an estimated $3 trillion in related green energy investments.

One driving factor behind the involvement of foreign companies in these subsidy-eligible projects is the lack of domestic supply chains for critical raw materials and complex parts required for green technologies such as solar panels and electric vehicles, which are favored by the Biden administration.

The analysis found that 15 of the 20 largest projects receiving IRA incentives and subsidies are linked to overseas corporations, with China, Japan, and South Korea being the primary countries represented.

However, the involvement of foreign companies in subsidy-eligible projects has raised concerns about the potential conflict between foreign policy, climate policy, and trade policy. Some officials are skeptical of Chinese influence in certain projects, leading to scrutiny of ventures like the $3.5 billion battery plant in Michigan, jointly undertaken by Ford and Chinese firm CATL.

Additionally, the Department of Energy (DOE) rejected a $200 million subsidy application from Microvast, a company with significant financial ties to China, accounting for 60% of its revenue.

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Other Foreign Companies

South Korean company Hyundai is involved in two projects with a combined investment of over $10 billion, while Japanese conglomerate Panasonic stands to gain around $2 billion in annual tax credits for its battery plant operations in Kansas and Nevada.

The issue of foreign companies benefiting from U.S. government subsidies raises questions about the balance between pursuing green energy goals and potential foreign influence, particularly from countries like China. As the green energy sector continues to grow, policymakers and stakeholders will need to carefully consider the implications of international collaboration in achieving the nation’s climate objectives.

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