SEOUL : South Korea's Hyundai Motor Group has signed an agreement to source electric vehicle batteries in North America from battery maker SK On, the companies said on Tuesday.
In a statement, SK Innovation Ltd's battery unit SK On said that under the terms of the memorandum of understanding , it will provide its batteries to the auto group's plants in the United States after 2025 for electric vehicle production. From next year at least 40 per cent of the value of critical minerals for batteries will have to come from the United States or a U.S. free-trade partner in order to receive U.S. EV tax credits of up to $7,500 per vehicle, a threshold set to rise to 80 per cent in 2027.
As the new law requires EVs to be assembled in North America to qualify for the tax credits, Hyundai Motor Co and its affiliate Kia Corp, as well as major European automakers, were excluded from the subsidies as they do not yet make the vehicles there.
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