UK firms could gain access to US green funding as part of plans to boost UK and US ties announced by Rishi Sunak and Joe Biden.
The pair unveiled the Atlantic Declaration, to strengthen economic ties between the two countries, at a White House press conference.
The PM said the agreement, which falls short of a full trade deal would bring benefits “as quickly as possible”.
UK electric car firms may get access to US green tax credits and subsidies.
Plans for a full free trade agreement abandoned months ago. On the plane ride over to Washington Mr Sunak said: “For a while now, that has not been a priority for either the US or UK.”
However, Labour’s shadow foreign secretary David Lammy criticised Mr Sunak.
Saying the government has left “Britain’s cupboards bare” by not securing a trade deal.
The Atlantic Declaration includes plans to mitigate some of the impact of the US flagship Inflation Reduction Act (IRA) on the UK economy. Thus, with proposals to remove barriers which affected trade in electric vehicle batteries.
Under current policy, the IRA provides tax credit worth $3,750 (£3,000) for each electric vehicle (EV) manufactured in the US. Or which use components mined, processed or manufactured in the country.
The UK is already a net exporter of raw materials for EV batteries to the US. But nations without a US trade deal are barred from accessing IRA subsidies.
