Bill Gates: "US IRA Electric Vehicle Subsidies Distort the Market"

Microsoft founder Bill Gates, co-chairman of the Bill & Melinda Gates Foundation, is giving a speech at the National Assembly Budget and Accounts Committee plenary session on the 16th. Photo by the National Assembly Press Photographers Association

[Asia Economy Reporter Jeon Jinyoung] Bill Gates, the founder of Microsoft (MS), stated that the electric vehicle subsidies under the U.S. Inflation Reduction Act (IRA) are distorting the market and need improvement.

According to Bloomberg on the 19th (local time), Gates said in an interview with Nikolai Tangen, CEO of the world's largest sovereign wealth fund, the Norwegian Government Pension Fund Global (GPFG), "Everything related to automobiles should be free trade."

The IRA includes $374 billion (approximately 484 trillion KRW) in support to expand domestic production of eco-friendly energy industries in the U.S. However, to receive a tax credit of up to $7,500 (approximately 9.72 million KRW) per vehicle, the battery must contain a certain percentage of components manufactured or assembled in North America, which has caused conflicts with the EU, South Korea, and others.

He also pointed out that the IRA has distorted trade in electric vehicles and related parts between the U.S. and the European Union (EU).

He emphasized, "Competition is good for both (the U.S. and the EU) regions. I hope the subsidies are well improved so that there is no distortion in the electric vehicle market."

Meanwhile, Gates gave a positive evaluation of the IRA subsidies supporting the hydrogen market.

He said, "Currently, the green hydrogen market basically does not exist," and predicted, "European governments are funding some (green hydrogen) projects within Europe, and the U.S. will also fund some (projects within the U.S.)."

He added, "I see this as healthy. It will create a market," and evaluated, "Reaching that level over the next 10 years would be a great achievement for the entire world."

This content was produced with the assistance of AI translation services.