Electric vehicle makers are eyeing ditching China and turning to noncompetitor countries like Indonesia for battery supplies to meet increasing demand without violating provisions of the Democratic climate legislation meant to move supply chains closer to home.

The Inflation Reduction Act, the new green energy and healthcare law Democrats passed in August, increased the federal electric vehicle tax credit’s total value to $7,500 to incentivize more purchases but added stringent new content requirements for vehicle batteries inputs that will phase in over the next seven years. The requirements are designed to claw back a share of the market from China and other competitors.

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