The respective officials from both the U.S. and the EU met on Monday to revise their plans for promoting semiconductor chip production for boosting local technological endeavors. The officials agreed on aiding the local production of semiconductor programs in their countries and agreed to share necessary plans to achieve a common end of not relying heavily on third parties to fulfill these needs.
The leaders officially met to discuss the new program of electrical vehicles being domestically produced and sold by the United States and which is a prospect also dreamt of by the United Kingdom in their drive to abolish the use of crude oil for domestic and public transport sectors. But the meeting reached a dead end and no viable outcome was observed.
Concerns were raised by many countries about the use of semiconductors in the massive production of electric vehicles which the United States is heavily promoting. This EV legislation proposed by the United States was the general concern of the French president.
The incentive section of the EV legislation states that “The Advanced Research Projects Agency – Energy (ARPA-E) was established within the U.S. Department of Energy with the mission to fund projects that will develop transformational technologies that reduce the nation’s dependence on foreign energy imports; reduce U.S. energy related emissions, including greenhouse gases; improve energy efficiency across all sectors of the economy; and ensure that the United States maintains its leadership in developing and deploying advanced energy technologies. The ARPA-E focuses on various concepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage.”
In the manufacturing incentives, the report by The U.S Department of Energy states that the Manufacturing Loan Program will offer eligible loans for up to 30% the cost of manufacturing of ATVs (Advanced Technology Vehicles) and their associated technological equipment.
Emmanuel Macron while meeting Joe Biden discussed the green energy program and the Inflation Reduction Act by the U.S. and said that he was not informed while the law was being discussed. He fears that the aggressive steps of the United States towards the reduction of inflation currently at an all-time high will reduce “clean energy jobs” in Europe and France.
The result of this inflation act will cause many vehicle companies to move out of Europe to find much more suitable and affordable conditions in the U.S., thus leaving European countries at an all-time low when the local vehicle prices will skyrocket and the European economic future will be grey.
In this regard, the European Union decided to pressure the United States from re-considering their EV legislation which is due to be implemented on Jan 1.
The legislation rules a contradiction with European contracts in North America. The implementation of this act will cause dismay as the original funding will not be adequate to meet the much cheaper built EVs in the U.S. and the North American companies suffering losses as well as government contractors in European nations.
The meeting was held keeping in view Chinese dominance over the semiconductor business and it was agreed upon that mutual assistance in the production of semiconductors locally will be supported by both parties. The parties also agreed to keep the relations transparent in this regard to mutually benefit from the enterprise.
however, the Legislation Act is still a topic to be discussed by the European Union and for the time being, the United States has offered an alternative solution while not averting from their plan on passing the aforementioned bill.