South Korea applauds US decision to prolong use of Chinese graphite in electric vehicles, ET Auto

South Korea Welcomes US Decision on EV <a href="">tax credits</a>

South Korea Applauds US Decision on Electric Vehicle tax credits

US Extends EV tax credits for Chinese Graphite

South Korea expressed its approval of the US decision to prolong automakers’ eligibility for electric vehicle tax credits, specifically for vehicles utilizing Chinese graphite, until 2026. This move is part of the Inflation Reduction Act aimed at reducing reliance on Chinese suppliers.

Securing Key Battery Materials

The South Korean industry ministry affirmed its commitment to securing essential battery materials, ensuring domestic manufacturers and carmakers can maintain competitiveness in the US market. The ministry highlighted challenges in diversifying the supply chain, particularly for graphite, and welcomed the extension of graphite use in EV batteries.

Financial Aid for EV Sector

To bolster the EV sector’s self-sufficiency in the supply chain, South Korea announced a significant financial aid package of 9.7 trillion won (USD 7.11 billion). This support is crucial for enhancing the country’s position in the global EV market.

Compliance with US Regulations

Following the US Treasury Department’s directive to reduce minerals in battery components, the South Korean Industry Ministry pledged assistance to companies in meeting regulatory requirements. This includes diversifying graphite supplies and accurate valuation of battery minerals to qualify for tax credits post-2026.

Published On May 9, 2024 at 03:33 PM IST

Read More of this Story at – 2024-05-09 10:03:00

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