Battery Association: "IRA Detailed Guidelines Reflect Korea's Requests... Expect Strengthened Battery Alliance"
The Korea Battery Industry Association positively evaluated that many of the requests from the Korean battery industry were reflected in the detailed guidelines for the electric vehicle tax credit under the Inflation Reduction Act (IRA) announced by the U.S. Department of the Treasury.
In a press release on the 1st, the Battery Industry Association stated, "With the matters requested jointly by our industry and government being reflected, it has become an opportunity for the battery supply chain cooperation between the two countries to achieve a mutual win-win."
The association said, "According to the detailed guidelines, if the constituent materials of cathode and anode active materials are processed in Korea, a country that has a Free Trade Agreement (FTA) with the U.S., our battery manufacturers will find it easier to meet the parts and minerals requirements," adding, "It is expected that they will benefit from the IRA."
It continued, "As the battery parts and minerals requirements are clearly defined within the IRA guidance, increasing predictability, strategic partnerships between U.S. electric vehicle companies and our battery firms will be further strengthened," and "The supply chain localization in the materials sector, which had a high dependence on overseas sources, will be reinforced, leading to revitalized domestic investment and increased exports."
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The U.S. Department of the Treasury announced the detailed regulations for the IRA electric vehicle tax credit on the 31st (local time). The detailed regulations define cathode and anode plates as battery parts but exclude cathode active materials from parts. If cathode active materials were included as battery parts, the need for North American manufacturing and assembly by our companies would increase; however, if classified as constituent materials, production in Korea, an FTA partner country, will still qualify for tax benefits.
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