Washington. The US plans to release additional information on the provision of tax credits for new electric vehicle (EV) purchases next month, Industry Minister Jang Young-jung said on a visit to South Korea.
Jung arrived in Washington this week for talks with his US counterpart, Deputy Secretary of Commerce Don Graves, on a range of issues including the Inflation Reduction Act.
The IRA offers the US government a tax credit of up to $7,500 for each buyer of a new electric vehicle assembled in North America as well as with batteries made from certain key minerals produced in the region, reports Yonhap news agency.
The US Treasury Department previously said it would release information toward critical mineral and battery component requirements that vehicles must meet in March to qualify for tax incentives in the IRA.
“It is not beneficial for us to continue in this uncertain environment, and therefore we have asked the US side to clarify (requirements) early in March,” Jung told reporters here.
The US side has said it will do so in principle, he said.
Seoul has been raising concerns that the IRA, signed into law in August 2022, could reduce the competitiveness of South Korean-made electric vehicles in the US, as no South Korean automakers currently produce EVs in the region.
Hyundai Motor and Kia Motors, South Korea’s two largest carmakers, are scheduled to begin producing EVs in the US next year, but requirements for EV battery minerals and components again prevent their clean energy cars from being entitled to the full benefits of the IRA. Can stop, which are to be produced here.
A Hyundai Motor official has said the company may be forced to consider relocating its US production facilities should the IRA continue to damage its business positions in the US, also noting that The company has made significant investments outside North America to secure critical minerals for EVs.
Jung said he has fully explained Sol’s position on the proposed guidelines on EV battery minerals and components. The US side said it would also carefully examine (the situation).(IANS)
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