South Korea to offer $5.3 billion in financing to EV battery firms

South Korea to offer $5.3 billion in financing to EV battery firms

Europe News Desk!! South Korea will extend 7 trillion won ($5.31 billion) in financial aid to domestic battery makers over the next five years to help them respond to the United States’ Inflation Reduction Act (IRA) and boost their competitiveness in the sector. Can get help The Ministry of Industry has given this information. The government will, among other things, extend financing at lower rates and insurance premiums to support facility investment by battery firms in North America. The IRA calls for up to $7,500 in tax credits to EV buyers whose vehicles are assembled in North America, Yonhap news agency reported, citing the Ministry of Trade, Industry and Energy. It requires EV batteries to be made with a certain proportion of minerals mined or processed in the US or countries or territories that have free trade agreements with Washington.

Minister of Industry Lee Chang-yang presided over a meeting with battery companies and relevant institutions, saying that as the IRA has caused the global business conditions in the battery sector to change rapidly, the government and the private sector need to find solutions need to work together. The government will fully support the battery manufacturers for their continued achievement in the global market. South Korea also plans to pursue new projects on the development of lithium iron phosphate batteries to help companies enter a new market. More tax incentives will be on the lookout for companies investing in battery materials and related sectors. According to the ministry, in an effort to secure technology skills, South Korea will seek to establish a mother factory or center of state-of-the-art technology development, research, production and other core functions. The country’s three leading battery makers – LG Energy Solutions, Samsung SDI and SK On – have pledged to make a combined new investment of 1.6 trillion won over the next five years.


World News Desk!!


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