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Behind the battery boom: Korean firms creating the future of electric cars offer further tax breaks

The Korean companies that help drive electric cars and batteries, boom Georgia and across USA are considering a constructive way forward amid federal regulation they see as damaging to the very value chains they spend billions building.

Representatives from Hyundai Motor, SK On and a lawyer from a steel giant POSCO offered during the dinner on December 7th, which is sponsored by Consulate General of Korea and organized by Art US Southeast Korea Chamber of Commerce that the US government has not fully considered the unintended consequences for foreign companies of the Inflation Reduction Act, its massive climate bill.

Immediately after the bill was signed into law last August, cars assembled overseas no longer qualify for a $7,500 consumer tax credit, making some foreign firms less competitive than their counterparts who already have plants here.

Batteries and raw materials for them must also come to the US or countries that have concluded free trade agreements, which should be done quickly, given Chinastrong market positions in important minerals.

Korean leaders and officials, including the country’s ambassador to the United States complained that the law should provide exemptions for companies that build factories in the United States. Hyundai has committed $5.5 billion for its so-called Meta Plant near Savannahon top SK On $2.6 billion commercial battery factory.

“Not everyone was involved in the development of this law, and those people who were involved in this vote did not really take into account the free trade area agreements or trading partners,” he said. He is a dreamchief executive coordinator of Art Hyundai Motor Co.office in Washington.

But Mr. Son was also optimistic that a suitable solution could be reached, given increased lobbying by Korean firms and the country’s much stronger investment presence in the US than when Hyundai arrived in the 1980s. Tomorrow afternoon SK On and Hyundai Motor have announced they will spend at least $4 billion on a battery plant joint venture Cartersville, Georgia

“The administration and Congress are sympathetic to the position that they have put other countries and companies at this stage,” Mr. Son said, adding that the bill would help the industry as a whole, even if it complicates Hyundai’s Georgia expansion plans.

Indeed, the US Senator from Georgia. Raphael Warnockin the face of a tough re-election campaign that he emerged victorious from, this fall he introduced a bill that would have exempted companies that manufacture in the US. , which is beneficial Korean manufacturer of solar panels Q CELLS Art Daltonclashed the senators’ climate goals with their desire to support foreign firms building Georgia’s auto sector.

Lynn Fisher Foxlaw firm partner c Arnold Porter representing POSCO – which in addition to traditional steel products makes materials for the battery business – echoed the Korean and European position that the IRA’s domestic assembly requirements could be a violation World Trade Organization rules.

“Imagine if someone in the Brazil said that in order to sell the planes to the Brazilian market, they had to be assembled in Brazil, Boeing would lose his mind. What if there was a requirement for raw beef to come from Korea in order to sell beef to Korea? (IowaUS Senator) Chuck Grassley would lose his mind. Therefore, I think that it is completely clear to me that this is a violation.”

“However, this is cold comfort,” she said, because the WTO lacks an appeals body and can take five years before any complaint is resolved.

SK Na Stephen Younghead of external relations and social value, focused his comments more on the practical aspects of staffing and operation of mass battery factories in Georgia, noting that the state is facing a shortage of manufacturing labor.

The key to solving persistent workforce challenges, he said, is changing perceptions of manufacturing in the state and getting more people into trades rather than four-year colleges.

“We need to make parents understand that production is not what it used to be. It’s clean, it’s safe, and it’s a career, not a job,” said Mr Jang, who asked 150 guests to support SK On as its name grows in Georgia. Hyundai Motors, Kia Motors, Samsung Electronics and LG Electronics are household names in America. SK – no. So I need everyone’s help to promote SK that we are a major player in the battery industry.”

The technical aspects of battery operation and the history of electric vehicles were explored at an academic symposium earlier in the program, which also served as the US Southeast Chamber of Commerce’s annual celebration at the Commercial Club in downtown Atlanta.

Grandson ChoiProfessor of the Department of Automotive Engineering Kookmin University Art Seoul, gave a talk on the history of electric cars since the 1800s, saying they were adopted early but were doomed due to high costs compared to the gas-powered models that were produced Henry Fordconveyor belt ‘s.

The same concern remains today, as electric cars have not yet reached a scale that would bring the cost down to affordability for ordinary consumers.

Lower battery costs will be necessary, he said, but he wondered aloud how companies would offset China’s influence in the short term. At the invitation of the consulate, Dr. Choi concluded his presentation with a proposal to change the IRA.

“Whatever we do, the important thing is that there is a reasonable amount of grace period,” he said, noting that companies need a transition period to comply with the law. “That’s the point: we need some time.”

Tech the professor Woo Lee’s son showcased his team’s research in a technical presentation. Partly funded by SK, Dr. Lee is working on technology that will greatly improve the efficiency of lithium-ion batteries.

The Georgia team created a rubber-like hard elastomer in which electrolytes (used to separate anodes and cathodes and move electrons between them) remain suspended. This will contribute to the movement towards the so-called “dream battery”, which will be thinner, more electrically conductive and less volatile, extending the range of EVs and improving safety. SK also invested in Colorado-based on Solid powerwhich is working on a similar breakthrough.

Moderator global atlanta, congratulatory words were heard at the event Department of Economic Development of Georgia Commissar Pat WilsonConsul General of Korea Yunju Park and State Rep. Sam Parka Democrat from District 101 in Georgia Gwinnett County.

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Behind the battery boom: Korean firms creating the future of electric cars offer further tax breaks

The Korean companies that help drive electric cars and batteries, boom Georgia and across USA are considering a constructive way forward amid federal regulation they see as damaging to the very value chains they spend billions building.

Representatives from Hyundai Motor, SK On and a lawyer from a steel giant POSCO offered during the dinner on December 7th, which is sponsored by Consulate General of Korea and organized by Art US Southeast Korea Chamber of Commerce that the US government has not fully considered the unintended consequences for foreign companies of the Inflation Reduction Act, its massive climate bill.

Immediately after the bill was signed into law last August, cars assembled overseas no longer qualify for a $7,500 consumer tax credit, making some foreign firms less competitive than their counterparts who already have plants here.

Batteries and raw materials for them must also come to the US or countries that have concluded free trade agreements, which should be done quickly, given Chinastrong market positions in important minerals.

Korean leaders and officials, including the country’s ambassador to the United States complained that the law should provide exemptions for companies that build factories in the United States. Hyundai has committed $5.5 billion for its so-called Meta Plant near Savannahon top SK On $2.6 billion commercial battery factory.

“Not everyone was involved in the development of this law, and those people who were involved in this vote did not really take into account the free trade area agreements or trading partners,” he said. He is a dreamchief executive coordinator of Art Hyundai Motor Co.office in Washington.

But Mr. Son was also optimistic that a suitable solution could be reached, given increased lobbying by Korean firms and the country’s much stronger investment presence in the US than when Hyundai arrived in the 1980s. Tomorrow afternoon SK On and Hyundai Motor have announced they will spend at least $4 billion on a battery plant joint venture Cartersville, Georgia

“The administration and Congress are sympathetic to the position that they have put other countries and companies at this stage,” Mr. Son said, adding that the bill would help the industry as a whole, even if it complicates Hyundai’s Georgia expansion plans.

Indeed, the US Senator from Georgia. Raphael Warnockin the face of a tough re-election campaign that he emerged victorious from, this fall he introduced a bill that would have exempted companies that manufacture in the US. , which is beneficial Korean manufacturer of solar panels Q CELLS Art Daltonclashed the senators’ climate goals with their desire to support foreign firms building Georgia’s auto sector.

Lynn Fisher Foxlaw firm partner c Arnold Porter representing POSCO – which in addition to traditional steel products makes materials for the battery business – echoed the Korean and European position that the IRA’s domestic assembly requirements could be a violation World Trade Organization rules.

“Imagine if someone in the Brazil said that in order to sell the planes to the Brazilian market, they had to be assembled in Brazil, Boeing would lose his mind. What if there was a requirement for raw beef to come from Korea in order to sell beef to Korea? (IowaUS Senator) Chuck Grassley would lose his mind. Therefore, I think that it is completely clear to me that this is a violation.”

“However, this is cold comfort,” she said, because the WTO lacks an appeals body and can take five years before any complaint is resolved.

SK Na Stephen Younghead of external relations and social value, focused his comments more on the practical aspects of staffing and operation of mass battery factories in Georgia, noting that the state is facing a shortage of manufacturing labor.

The key to solving persistent workforce challenges, he said, is changing perceptions of manufacturing in the state and getting more people into trades rather than four-year colleges.

“We need to make parents understand that production is not what it used to be. It’s clean, it’s safe, and it’s a career, not a job,” said Mr Jang, who asked 150 guests to support SK On as its name grows in Georgia. Hyundai Motors, Kia Motors, Samsung Electronics and LG Electronics are household names in America. SK – no. So I need everyone’s help to promote SK that we are a major player in the battery industry.”

The technical aspects of battery operation and the history of electric vehicles were explored at an academic symposium earlier in the program, which also served as the US Southeast Chamber of Commerce’s annual celebration at the Commercial Club in downtown Atlanta.

Grandson ChoiProfessor of the Department of Automotive Engineering Kookmin University Art Seoul, gave a talk on the history of electric cars since the 1800s, saying they were adopted early but were doomed due to high costs compared to the gas-powered models that were produced Henry Fordconveyor belt ‘s.

The same concern remains today, as electric cars have not yet reached a scale that would bring the cost down to affordability for ordinary consumers.

Lower battery costs will be necessary, he said, but he wondered aloud how companies would offset China’s influence in the short term. At the invitation of the consulate, Dr. Choi concluded his presentation with a proposal to change the IRA.

“Whatever we do, the important thing is that there is a reasonable amount of grace period,” he said, noting that companies need a transition period to comply with the law. “That’s the point: we need some time.”

Tech the professor Woo Lee’s son showcased his team’s research in a technical presentation. Partly funded by SK, Dr. Lee is working on technology that will greatly improve the efficiency of lithium-ion batteries.

The Georgia team created a rubber-like hard elastomer in which electrolytes (used to separate anodes and cathodes and move electrons between them) remain suspended. This will contribute to the movement towards the so-called “dream battery”, which will be thinner, more electrically conductive and less volatile, extending the range of EVs and improving safety. SK also invested in Colorado-based on Solid powerwhich is working on a similar breakthrough.

Moderator global atlanta, congratulatory words were heard at the event Department of Economic Development of Georgia Commissar Pat WilsonConsul General of Korea Yunju Park and State Rep. Sam Parka Democrat from District 101 in Georgia Gwinnett County.

Reported by Source link

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