The United States put forward updated regulations on Friday outlining which electric cars will qualify for tax incentives. These rules exclude vehicles that use batteries or minerals from countries like China that are currently at odds with the U.S.

The guidelines determine which eco-friendly vehicles will be eligible for a maximum subsidy of $7,500 as per the Inflation Reduction Act of President Joe Biden, a federal legislation that supports the development of sustainable and domestic energy.

Currently, only 20 of the 100+ electric vehicles available in the United States are eligible for a tax credit. However, this number may decrease even more once this regulation takes effect.

If a renewable energy battery passes through a production line owned by a “foreign entity of concern,” the vehicle it is installed in would be ineligible for receiving tax incentives from the U.S. government, beginning in 2024.

The updated regulations focus on companies that are established or based in China, Russia, North Korea, and Iran, among other nations. It also includes companies where at least 25% of the ownership or board positions are under the control of these countries.

Starting in 2025, any electric cars containing essential minerals like lithium, nickel, and cobalt that are mined or processed by a “foreign entity of concern” will not qualify for subsidies.

The regulations will be available for public input from leaders in the automotive industry for a few weeks and may be modified based on suggestions from the field.

The source of some data in this report is Agence France-Presse.