[Concall] SK Ino "IRA Impact... China's US Entry Restrictions, Local Demand Increase, Investment Profitability Improvement"

Q3 Earnings Conference Call

[Asia Economy Reporter Choi Seoyoon] SK Innovation stated on the 3rd during the 2022 Q3 earnings conference call, "As you already know, the Inflation Reduction Act (IRA) is expected to ultimately provide significant benefits to battery companies," adding, "However, since detailed regulations have not yet been released, it is difficult to say how much economic impact there will be at this time."

They continued, "Nevertheless, from a macro perspective, regarding the company's recognition of the effects of the Inflation Reduction Act, first, the IRA will fundamentally have the effect of restricting Chinese companies' entry into the U.S. market," and "Second, it is expected to increase demand within the U.S., and third, to improve investment profitability in the U.S.," they said.

Furthermore, they explained, "Specifically, in the case of SK On, operating a local factory in the U.S. allows for immediate response, and secondly, since capacity expansion is underway in the U.S., there are advantageous aspects," adding, "Also, even before the announcement of the Inflation Reduction Act, we have been expanding the local battery material supply chain, already securing a favorable position."

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