Tesla electric cars are displayed at a sales and service center in Vista, California, U.S., June 3, 2022. REUTERS/Mike Blake/File Photo
SEOUL, Aug 29 (Reuters) – South Korean officials will meet with their U.S. counterparts this week to express “concerns” about the anti-inflation law, which limits who can receive U.S. subsidies for electric vehicle production. and where companies can source batteries.
President Joe Biden signed into law this month a $430 billion, billed as the largest climate package in American history. read more
The law requires that EVs be assembled in North America to be eligible for tax credits, ends subsidies for many types of EVs, and that a significant amount of the minerals used in the batteries come from the US or US customer free. read more
FALLOUT
The new regulations are a major problem for battery makers LG Energy Solution (LGES) ( 373220.KS ), SK On and Samsung SDI ( 006400. See the article : Gotion High-Tech hits the Swiss stock exchange – electrive.com.KS ), battery industry sources said.
South Korea’s LGES supplies Tesla ( TSLA.O ) and General Motors ( GM.N ), while SK On and Samsung SDI supply Ford Motors ( F.N ) and Volkswagen ( VOWG_p.DE ), among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research.
“It’s become a big headache … Automakers say they don’t expect this new law to take effect soon,” said a South Korean battery industry source.
A second South Korean battery industry source said there is a need for the government to ask the United States to delay the regulation of battery production because it will take a long time to determine where all the ingredients and minerals come from. make some changes to the battery supply. .
“We don’t have many options other than asking the US to relax the battery and mining laws and delay the actual implementation,” said the second source.
The sources were not identified because they were not authorized to speak to the media.
LGES, SK On and Samsung SDI declined to comment on whether they expect to meet the standards by next year.
For automakers, analysts said the EV subsidy changes would have limited financial impact because Hyundai ( 005380.KS ) and Kia’s ( 000270.KS ) U.S. EV sales are a small percentage of their overall US vehicle sales.
Yet it represents a step backwards, they say.
“Hyundai is at a disadvantage in the short term compared to automakers whose EVs are gaining traction, as the electric vehicle market in the U.S. continues to grow,” said Meritz Securities Analyst Kim Jun-sung.
A Hyundai spokesman was not immediately available for comment.
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Report by Heekyong Yang and Joyce Lee; Editing by Ana Nicolaci da Costa On the same subject : High-tech battery maker expands engineering operations in San Jose.
Our position: Thomson Reuters Credentials.
What is the best lithium stock?
6 Best Lithium Stocks To Buy in 2022 Read also : High-tech Hyundai Ioniq 6 aims to make Gen Z entertain people.
- Albemarle.
- SQM.
- Lithium America.
- Piedmont Lithium.
- Ganfeng Lithium.
- Life.
Is lithium a good investment now? When it comes to batteries, lithium is currently the best material available on the market. However, that will not last forever. While it is worth investing now, new types of batteries have already been developed, which will be a better option in the future.
What is the best lithium company?
| The company | Market Cap |
|---|---|
| Ganfeng Lithium (OTC:GNEN.F) | $21 billion |
| Sociedad Quimica y Minera de Chile (NYSE:SQM) | $21 billion |
| Live (NYSE:LTHM) | $3.4 billion |
| American Lithium (NYSE: LAC ) | $3.4 billion |
Who makes batteries for Tesla?
Finally, battery suppliers. Initially, and for a long time, the main supplier of Tesla batteries was Panasonic – 1865- and 2170 models with NCA chemistry. But later combined through the energy treatment of LG 2170 with the chemistry of NCM) and Catl (prismat of the chemistry of LFP).
Who is Tesla’s main battery supplier? Tesla’s battery supplier Panasonic is offering an impressive increase in capacity. Panasonic, which has grown as a major supplier of batteries in the EV industry through its partnership with Tesla, is now teasing some important advances in battery capacity.
Does Tesla make its own batteries?
At the end of 2020, Musk announced that Tesla intends to reduce the cost of the most expensive EV segment by producing its own batteries. Tesla’s lithium-ion battery 4680 â with a diameter of 46 millimeters and a height of 80 millimeters â holds about 5 times the energy of the current 2170 cells.
What battery company did Ford invest in?
In central Kentucky, Ford plans to build a new battery manufacturing facility with SK Innovation – the $5.8 billion BlueOval SK Battery Park – creating 5,000 jobs.
What battery company does Ford work with? Ford announced that Contemporary Amperex Technology Co., Ltd. (CATL) will provide complete LFP battery packs for Mustang Mach-E models for North America starting next year and the F-150 Lightning in early 2024.
What solid state battery company is working with Ford?
Solid-state battery developer Solid Power announced on Monday that it has completed the installation of a pilot production line at its factory in Louisville, Colorado, and is on track to begin supplying battery cells to partners Ford and BMW by the end of 2022. .
What company supplies Ford with lithium batteries?
July 21 (Reuters) – Ford Motor Co ( F.N ) said on Thursday it would buy lithium from ioneer Ltd’s ( INR.AX ) Rhyolite Ridge mine in Nevada and use the metal in production. electric batteries in the United States.
