Under the Inflation Reduction Act that was recently approved by the US Senate, households could receive up to $7,500 (£6,140) in tax credits to buy an electric car or $4,000 (£3,275) for a used one.

To qualify for the tax credit, the bill would require that the electric vehicles (EV) contain a battery built in North America with minerals mined or recycled on the continent.

Although the condition is part of President Joe Biden's push towards increasing the US's battery production capabilities and reducing dependence on overseas supply chains, the European Union and South Korea have expressed concerns over the proposal. They have argued it would discriminate against European producers and break World Trade Organization rules.

"The European Union is deeply concerned by this new, potential, trans-Atlantic trade barrier," European Commission spokeswoman Miriam Garcia Ferrer said. "We think that it's discriminatory, that it's discriminating...