29 °C Singapore, SG
April 9, 2024
Latest News
Corio Generation and bp Alternative Energy Investment Ltd invest in South Korea Australia missing climate targets Advocating for US based offshore wind Broken Record, Temperatures hit new highs, yet world fails to cut emissions (again) Toshiba and GE to shore up Japanese offshore wind domestic supply chain How I got here… National University of Singapore green finance academic Sumit Agarwal Multi-billion-dollar renewables project earmarked for Yindjibarndi native title land Smart Energy Finances: Enel divests 50% of Australian renewable operations to Japanese oil and gas giant Critical minerals investments surged by 30% finds IEA Kung Fu nuns fight climate change One of Southeast Asia’s largest energy storage systems comes online Why turning waste into gas will add value to this Indigenous economy Renewable energy records tumble around Australia as rooftop solar power soars Topsoe supports SGP BioEnergy in renewable fuels production in Panama ‘Poor tropical regions’ suffer greatest economic damage from worsening heatwaves UNEP: Meeting global climate goals now requires ‘rapid transformation of societies’ Analysis: Africa’s unreported extreme weather in 2022 and climate change Partly wind-powered coal ship sails into Newcastle New fossil fuels ‘incompatible’ with 1.5C goal, comprehensive analysis finds Australian offshore wind ‘supercharged’ in Victoria as billions pledged to fast-track projects Goldwind turbine ‘breaks world record for largest rotor diameter’, Chinese media reports BW Ideol to work with developer Taiya on Taiwan floating wind pilot US to boost floating wind power Wind Power in South Korea – an overview GS E&C to develop bioethanol using cassava waste Korean business group has asked the US to make exceptions for Korean EV’s in Inflation Reduction Act Equinor’s Australian offshore wind debut Global energy transition stalls – 2022 Global Status Report in pictures India’s ReNew Power secures $1bn loan for gigascale 24/7 wind-solar-battery project POSCO International to merge with POSCO Energy

Korean business group has asked the US to make exceptions for Korean EV’s in Inflation Reduction Act


Hyundai Motor Group Chairman Euisun Chung delivers remarks along with U.S. President Joe Biden on the automaker’s decision to build a new electric vehicle and battery manufacturing facility in Savannah, Georgia, May 22. Reuters-Yonhap

A large Korean business group has asked the US to make exceptions for Korean-made electric vehicles in its new law that says EVs made outside of North America can’t get tax breaks. The group says that if the US doesn’t do this, it will hurt Korean automakers that have invested a lot in the area.

In a letter sent Thursday (Seoul time) to U.S. President Joe Biden and five key federal departments, the Federation of Korean Industries (FKI) made the request. Seoul wants to give Washington a chance to change its mind about the tax credit provisions in the Inflation Reduction Act (IRA) that help the Korean auto industry.

FKI Chairman Huh Chang-soo said in the letter, which was also sent to the U.S. Congress and the governors of Georgia, Alabama, and Michigan, that automakers will lose out on EV tax credits for EVs made outside of North America.

“This would be a setback to all your efforts to connect our two regions and build and strengthen economic partnerships,” he said. “I hope that automakers like Hyundai and Kia will get a break from treatment that goes against the U.S.-Korea Free Trade Agreement and the World Trade Organization’s agreement on subsidies.”

The IRA, which Biden signed into law on August 16 (U.S. time), calls for more tax breaks for buying electric vehicles, but only for those made in North America. It also has rules that say electric vehicles can’t get tax credits if their batteries have parts made with minerals from China.

Korea is worried about the new law and has said that its unfairness will put its carmakers, like Hyundai Motor Co. and Kia Corp., on an unequal footing in the U.S. market, since they make their flagship electric vehicles (EVs) in domestic plants and ship them overseas.

Huh said that because of the new law, about 70 percent of the 72 EV models that were eligible for the tax credit before will now cost more for Americans to buy.

He said it would be “unfair” to car companies like Hyundai Motor that are “working hard to invest in America, create new jobs, and help the U.S. reach the goal of reducing carbon emissions set by your administration.”

Hyundai Motor has promised to spend $5.5 billion to build an electric vehicle (EV) plant and an EV battery plant in Georgia.

This week, a group of people from the Korean government went to Washington to talk with U.S. officials about the issue. In the coming weeks, Ahn Duk-geun, who is in charge of trade, and Lee Chang-yang, who is in charge of industry, will both go to Washington to talk with their counterparts about the issue.

Seoul has asked for a formal way to talk about worries about the IRA tax credits, and Washington has agreed, Deputy Trade Minister Ahn Sung-il told reporters Wednesday during the delegation’s visit. (Yonhap)

Leave a Reply

Your email address will not be published. Required fields are marked *