SEOUL - South Korean officials will meet US counterparts this week to express"concerns" about the Inflation Reduction Act, which restricts who can receive US subsidies for the production of electric vehicles and where firms can source battery materials., seen as the biggest climate package in US history.
South Korean officials are expected to tell counterparts from the US Trade Representative's office and the US Treasury that the new law may violate trade norms such as the US-South Korea free trade agreement and the WTO agreement, the industry ministry said. Globally, the treatment of some 58 per cent of lithium, 64 per cent of cobalt and 70 per cent of graphite goes through China, according to ministry data.
"It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.