Seoul: Seoul’s Market Minister Ahn Duk-geun on Saturday welcomed the US government’s go to increase tax credits for electric powered motor vehicles (EV) made up of Chinese graphite right up until the conclude of 2026.
In a assertion, Duk-geun stated that his ministry’s efforts to “reflect South Korean companies’ posture, which includes on the graphite challenge, bore fruit,” stories Yonhap information agency.
South Korea has expressed considerations that it will be tricky to find an alternate provide chain for graphite in the supplied timeframe less than the new Inflation Reduction Act (IRA).
“The federal government has been actively speaking with the US to optimize rewards for South Korean firms due to the fact the enactment of the IRA in August 2022,” the ministry mentioned.
The US Treasury Section has explained that the ultimate policies on the clean up vitality auto provisions of the IRA have the momentary exemption of graphite from guidelines on the use of minerals from “international entities of issue (FEOC),” like from China, Russia, North Korea and Iran.
The IRA supplies up to $7,500 in tax credits to buyers of EVs that fulfilled sourcing demands and were assembled in North America.
Automakers devoid of tax benefits would discover it challenging to compete in opposition to the beneficiaries of the credits.