On Sunday, industry sources revealed that South Korean companies have asked the United States to give more information on which overseas firms they are not required to buy critical electric vehicle (EV) battery minerals from under the U.S. Inflation Reduction Act (IRA).
Representatives from LG Energy Solution, SK On, Samsung SDI, POSCO Future M, SK ie technology Co. and Lotte Energy Materials Co. requested the clarification from U.S. Deputy Secretary of Commerce Don Graves at a private meeting in Seoul on Friday.
The executives wanted the U.S. to make clear the definition of “foreign entity of concern” to eliminate any doubts concerning their businesses and investments. They also requested that the U.S. take into account the global interdependence of EV battery supply chains when setting the scope of a foreign entity of concern.
The IRA provides tax credits of up to US$7,500 to each buyer of a new electric vehicle only assembled in North America. According to the U.S. Treasury Department, for a vehicle to be eligible, it must meet sourcing requirements for both the critical minerals and battery components contained in the vehicle.
Beginning in 2024, eligible vehicles may not contain any battery components that are manufactured by a foreign entity of concern, and beginning in 2025, such vehicles may not contain any critical minerals that were extracted, processed or recycled by such entities, according to the department.
This file photo taken Sept. 21, 2023, shows Don Graves, U.S. deputy secretary of commerce, delivering a speech at the Korea-US Advanced Industry and Technology Cooperation Forum 2023 at the Grand Hyatt hotel in central Seoul. (Yonhap)
kyongae.choi@yna.co.kr
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