Joint public-private response meeting held
Minister of Trade, Industry and Energy Lee Chang-yang presides over a joint public-private meeting to respond to the Inflation Reduction Act (IRA) held at the Korea Chamber of Commerce and Industry conference room in Jung-gu, Seoul on the 29th. [사진=산업통상자원부]
The government and major companies in the electric vehicle and battery industries have gathered in one place to respond to the US Inflation Reduction Act (IRA).
The Ministry of Trade, Industry and Energy (hereinafter referred to as the Ministry of Trade, Industry and Energy) held a joint public-private meeting in response to the US Inflation Reduction Act (IRA) at the Korea Chamber of Commerce at 2: 00. pm on the 29th with the participation of eight companies and related organisations.
This joint public-private meeting was held to evaluate the overall situation before the full-scale implementation of the IRA in January next year, and to discuss the direction of future responses between government and industry.
At the meeting that day, Minister Lee said, “The government has continuously expressed our views to the United States faster and more actively than any other country through summit meetings, consultations with the United States Congress and the executive branch.” We have achieved some results, such as expressing our willingness to continue consultations and propose amendments to the United States Senate and the House of Representatives.”
In particular, Minister Lee said, “With today’s meeting as an opportunity, the government intends to promote short-term, medium-term to long-term measures with the industry from different angles.” We will do that,” he explained.
At the same time, he urged, “Although local investment to secure the US market is inevitable in the industry, pay special attention to employment and domestic investment.”
Although it is really difficult to revise the IRA Act, the Ministry of Trade, Industry and Energy intends to continue related activities focused on the amendment proposed to the Senate and the House of Representatives (postponement of vehicle tax credit requirements electricity for 3 years). At the beginning of next month, the head of the Ministry of Trade, Industry and Energy and members of the Business Committee of Trade, Industry, Energy and Small and Medium Enterprises of the National Assembly will visit the United States together to contact the US legislators states
The domestic industry expects large-scale benefits (US government estimate: 500 trillion won over 10 years) according to the incentive clauses in various areas within the IRA. To this end, we intend to consult closely with the government and respond accordingly.
Hyundai Motor Company is reviewing hybrid electric vehicle production at existing internal combustion vehicle factories such as Georgia. It intends to operate the electric vehicle equipment only as designed and safe batteries that meet the mineral and parts requirements as soon as possible to meet the tax credit requirements set by the IRA.
The three battery companies (LG Energy Solutions, Samsung SDI, and SK On), which are aggressively entering the US market to secure the market, intend to improve price competitiveness by making full use of tax credits investment and production.
Hanwha Q Cells plans to secure the market by expanding solar module facilities in Georgia, and CS Wind plans to receive tax credit benefits by using its onshore wind power tower production plant in Colorado.
Reporter Lee Ji-wan anew@edaily.co.kr
