US excludes China from electric vehicle subsidies… Burden on the global battery industry

US excludes China from electric vehicle subsidies… Burden on the global battery industry

[뉴스리뷰]

[앵커]

Going forward, electric vehicles that use key minerals procured from China in their batteries will be excluded from the U.S. government’s subsidies.

The idea is to exclude China from the rapidly growing electric vehicle and battery market, which is expected to be a burden on the global battery industry, including Korea.

This is Correspondent Jeong Ho-yoon in Washington.

[기자]

The Biden administration has been providing subsidies of up to $7,500, or 9.8 million won in Korean money, to electric vehicles finally assembled in North America in accordance with the Inflation Reduction Act.

However, an exception was made in cases where minerals from ‘foreign companies of concern’ were used, but the content was ambiguous, raising the need for more detailed regulations.

The core of the US government’s new ‘foreign concern company’ regulations is to effectively exclude China from electric vehicle subsidies.

From 2025, any company in China that uses key minerals procured in electric vehicle batteries will be excluded from subsidies.

Even if a Chinese company establishes a joint venture with a foreign company in another country, it will not receive subsidies if the Chinese company’s stake is more than 25%.

This means that we will do our best to prevent China from enjoying the benefits of U.S. subsidies.

<조 바이든 / 미국 대통령 / 지난해 말> “It is very important because electric vehicles are the future of automobiles. In particular, batteries are a key component of electric vehicles. However, 75% of battery production is now taking place in China.”

Conditionally allowing joint ventures by limiting shares appears to be a measure that demonstrates some flexibility, but considering the current situation in which the global battery industry, including Korea, relies heavily on China for its supply chain, it is expected to be a considerable burden. .

Major foreign media outlets predicted that the U.S. government would establish strict regulations, which could reduce the number of electric vehicles eligible for subsidies.

This is Jeong Ho-yoon from Yonhap News TV in Washington. (ikarus@yna.co.kr)

#electric vehicle #battery #IRA #subsidy #China

Yonhap News TV article inquiries and reports: KakaoTalk/Line jebo23

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