According to Yonhap news agency, a new US law that excludes electric vehicles that are assembled outside of North America from tax credits could convince South Korea’s Hyundai Motor Co to move the start date for building projects of an EV and battery factory in the US to this current year.
Hyundai Motor announced in May that it would break ground on its new Georgia facility in early 2023, with commercial production beginning in the first half of 2025 and a capacity of 300,000 units per year.
However, Yonhap reported that the company is now thinking of starting building later this year in order to start commercial operations in the second half of 2024, citing an unidentified auto industry source.
On August 16, US President Joe Biden signed into law a $430 billion bill that eliminates tax credits for roughly 70 per cent of the 72 EV models that were previously eligible. more info
As a result, electric vehicles sold by Hyundai Motor, Kia Corp, Toyota, and others are no longer eligible for tax breaks.
According to a foreign ministry official, South Korean Foreign Minister Park Jin expressed concerns about the new US legislation during a phone call with US Secretary of State Antony Blinken last week.
Industry Minister Lee Chang-yang told a parliamentary session that South Korea will consider filing a complaint with the World Trade Organization over the United States Inflation Reduction Act, citing concerns that the law may violate WTO rules and a bilateral free trade agreement between South Korea and the United States.
According to Lee, the country’s Trade Minister Ahn Duk-geun plans to discuss the issue with US officials next week during his visit to Washington.
(Adapted from EconomicTimes.com)