The Inflation Reduction Act (IRA) provisions aim to encourage the purchase of new electric vehicles (EVs) by providing consumers with a tax credit of up to $7,500. Before the IRA was enacted in August 2022, most U.S. and foreign-manufactured EVs qualified for tax credits, with a limit of 200,000 vehicles per manufacturer. The IRA removed this cap but introduced new criteria, including assembly and sourcing restrictions.
To qualify for the full tax credit, the EV must undergo final assembly in North America, and two additional requirements relate to the value and source of (1) EV battery components and (2) relevant critical minerals. For the critical minerals portion of the tax credit, a minimum of 40% of the value of the battery’s critical minerals must be extracted, processed in the United States, or in a U.S. free trade agreement (FTA) partner, or recycled in North America, starting in 2023. This percentage is set to increase gradually to 80% by 2027.
Among the critical minerals the United States depended on imports for 95% or more of the supply for 13 distinct minerals, with China serving as the primary source for over half of them.
| Mineral | Net Import Reliance as Percentage of Consumption | Primary Import Source (2018-2021) |
| Arsenic | 100% | China |
| Fluorspar | 100% | Mexico |
| Gallium | 100% | China |
| Graphite (natural) | 100% | China |
| Indium | 100% | Republic of Korea |
| Manganese | 100% | Gabon |
| Niobium | 100% | Brazil |
| Scandium | 100% | Europe |
| Tantalum | 100% | China |
| Yttrium | 100% | China |
| Bismuth | 96% | China |
| Rare Earths (compounds and metals) | 95% | China |
| Titanium (metal) | 95% | Japan |
| Antimony | 83% | China |
| Chromium | 83% | South Africa |
| Tin | 77% | Peru |
| Cobalt | 76% | Norway |
| Zinc | 76% | Canada |
| Aluminum (bauxite) | 75% | Jamaica |
| Barite | 75% | China |
| Tellurium | 75% | Canada |
| Platinum | 66% | South Africa |
| Nickel | 56% | Canada |
| Vanadium | 54% | Canada |
| Germanium | 50% | China |
| Magnesium | 50% | Israel |
| Tungsten | 50% | China |
| Zirconium | 50% | South Africa |
| Palladium | 26% | Russia |
| Lithium | 25% | Argentina |
Oman possesses a range of natural resources, encompassing petroleum, natural gas, copper, asbestos, limestone, chromium, and gypsum. The nation also boasts mineral reserves such as copper, gold, silver, chromite, lead, nickel, manganese, and zinc. Therefore, Omani companies in the mining sector and having trading activities stand to gain significantly due to the FTA between Oman and USA.