[Special Stock] 'Yanggeukjae' L&F Surges Over 7% as US Subsidy Concerns Ease

by Kwon Jaehee

Published 03 Apr.2023 09:39(KST)

Updated 03 Apr.2023 10:32(KST)

LNDF is showing strong performance in the early trading session on the 3rd. The resolution of uncertainties following the announcement of detailed guidelines for the U.S. Inflation Reduction Act (IRA) is interpreted as driving the stock price increase.

As of 9:33 a.m. on the same day, LNDF is trading at 338,000 KRW, up 7.81% compared to the previous trading day on the KOSDAQ market.

The U.S. government announced on the 31st of last month (local time) detailed guidelines related to electric vehicle subsidies under the Inflation Reduction Act (IRA), deciding not to include cathode active materials in the battery component criteria for EV subsidies under the IRA.

[Special Stock] 'Yanggeukjae' L&F Surges Over 7% as US Subsidy Concerns Ease

Additionally, for critical minerals, materials imported from countries that do not have a Free Trade Agreement (FTA) with the U.S. but processed in South Korea, which has an FTA with the U.S., will still qualify for subsidy eligibility.

Researcher Ianna Yuanta from Yuanta Securities analyzed, “The inclusion of cathode active materials as critical minerals in the detailed IRA legislation has resolved uncertainties for cathode material companies,” adding, “Among cathode material companies, LNDF has the most attractive valuation.”