According to Reuters, the U.S. Treasury Department announced on the 19th (local time) that it will disclose the direction of implementing core minerals and battery parts conditions until the 31st of this month and announce detailed regulations in March next year.
The U.S. Treasury Department explained, “The requirements for minerals and battery components take effect after the Treasury Department announces the rules.”
This means that electric vehicles that do not meet related requirements can also be eligible for tax deductions until detailed regulations are announced in March, Reuters said.
According to the IRA, the maximum amount of electric vehicle tax deductions is $7,500 (about 9.77 million won), and the remaining $3,750 can be received only when the battery reaches 50% of the core minerals in North America, and more than 40% of the batteries must be mined and processed in the U.S. or countries that have signed free trade agreements.
The proportion of North American manufacturing and assembly parts required for tax deductions will rise gradually every year to 100% by 2029, and the mining and processing ratio of core minerals in the U.S. and FTA signatories will rise gradually every year to more than 80% by 2027.
Currently, not only Korea but also electric vehicle exporters such as France and Germany are pressing the U.S. for a broad definition of North American products and FTAs.
Meanwhile, U.S. General Motors (GM) and Tesla vehicles will be subject to electric vehicle tax deductions again from January 1 next year after the U.S. Congress lifted the upper limit on electric vehicle tax benefits in August.
Recently, through an interview with Hyundai Train Motor Vice President of North America, they are pressuring manufacturing plants and investments to the extent that they are considering relocation to South America.
JENNIFER KIM
ASIA JOURNAL
