[ad_1]
The act requires 50 per cent of the value of battery components to be produced or assembled in North America to qualify for a US$3,750 credit and 40 per cent of the value of critical minerals sourced from the United States or a free trade partner also for a US$3,750 credit.
“Both the government and businessmen should cooperate to find solutions together to effectively cope with situations changing rapidly after the Inflation Reduction Act,” Trade Minister Lee Chang-yang said while presiding over a meeting with major battery cell makers and materials firms.
In November, South Korea launched the government-backed battery alliance to better source key metals dominated by China to bolster battery supply chain stability.
South Korea’s LG Energy Solution (LGES), Samsung SDI and SK On comprise three of the world’s five biggest EV battery cell makers, commanding more than a quarter of the global market and supplying the likes of Tesla, Volkswagen AG and General Motors.
In March, LGES said it would resume a stalled US battery project with a US$5.6 billion investment in Arizona to qualify for federal incentives under the Inflation Reduction Act.
[ad_2]
Source link