SEOUL (Archyde.com) – Officials from South Korea’s Ministry of Trade, Industry and Energy are visiting the United States this week to express “concerns” over the U.S.’s anti-inflation law passed on Thursday. This is because South Korean manufacturers such as Hyundai Motor are at a disadvantage when it comes to selling electric vehicles (EVs) in the U.S. market. It is expected that they will complain that there is a risk of conflict.
The new law limits the EV tax credit to vehicles assembled in North America. It also mandates that a certain amount of important minerals used in EV batteries be sourced from the United States or from countries with which the United States has a free trade agreement (FTA).
South Korean battery giants LG Energy Solutions, SK On and Samsung SDI hold more than 25% of the global EV battery market, according to SNE Research.