First Phosphate and LG Energy Solution began to manufacture lithium iron phosphate (LFP) battery cells in North America.
According to the Foreign Entity of Concern (FEOC) regulations, to qualify for investment tax credit (ITC) incentives, starting in 2026, at least 55% of a project’s costs must originate from non-prohibited foreign entities, rising to 75% by 2030 and onwards.
This is highly likely to include materials, equipment and financing originating in China. At the same time, the tariff dispute between the US and China, while currently ‘paused’ with import tariffs for batteries at 54% of the goods’ value until 12 August, has also thrown the industry a major curveball.
