As automakers call on the U.S. government to rethink a plan to limit tax credits for electric vehicles, they're facing opposition from an unexpected source: their own suppliers. Car giants such as Ford Motor Co. and Toyota Motor Corp. say the government should loosen the terms of the $430 billion Inflation Reduction Act to allow manufacturers to source EV components from more places. Under the recently passed legislation, consumer tax credits the auto industry says are critical to widespread adoption wouldn't be allowed for EVs whose batteries contain material from a so-called "foreign entity of concern" beginning in 2024.
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