South Korea welcomes US move to extend tax credits for EVs containing Chinese graphite
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Seoul's Industry Minister Ahn Duk-geun on Saturday welcomed the US government's move to extend tax credits for electric vehicles (EV) containing Chinese graphite until the end of 2026.
In a statement, Duk-geun said that his ministry's efforts to "reflect South Korean companies' position, including on the graphite issue, bore fruit," reports Yonhap news agency.
South Korea has expressed concerns that it will be difficult to find an alternative supply chain for graphite within the given timeframe under the new Inflation Reduction Act (IRA).
"The government has been actively communicating with the US to maximize benefits for South Korean companies since the enactment of the IRA in August 2022," the ministry said.
The US Treasury Department has said that the final rules on the clean energy vehicle provisions of the IRA have the temporary exemption of graphite from rules on the use of minerals from "foreign entities of concern (FEOC)," including from China, Russia, North Korea and Iran.
The IRA provides up to $7,500 in tax credits to buyers of EVs that met sourcing requirements and were assembled in North America.
Automakers without tax benefits would find it difficult to compete against the beneficiaries of the credits.
