Carmakers may need several years to revamp their supply chains to meet new rules, but the legislation is still seen as a win for electric vehicles.
Demand for electric vehicles has been far stronger than the supply of battery materials like lithium, nickel and cobalt.
The maker of luxury electric cars that hopes to challenge Tesla struggled to get parts and build vehicles in the second quarter.
Tesla said it expected capital expenditures to be $6 billion to $8 billion in 2022, up from an April forecast of $5 billion to $7 billion.
Ties to potentially coercive labor practices could prove a problem for an industry that is heavily dependent on China, once a new law barring Xinjiang products goes into effect.
The Biden administration is planning a major shift to electric vehicles, but experts say it requires a secure, resilient supply of critical minerals.
The electric carmaker had to close an important factory in Shanghai because of China’s efforts to stamp out a coronavirus outbreak.
The electric carmaker maintained its momentum from last year even as larger automakers continue to struggle with parts shortages.
The price of nickel, an essential ingredient in most batteries, has soared because of fear that Russian supplies could be cut off.
The German automaker, which has made cars in the state for decades, has invested $1 billion in a factory to supply the power for electric vehicles.