Photo : YONHAP News
The U.S. treasury department has announced its final guidance on a tax credit under the Inflation Reduction Act that could signal good news for South Korea’s battery industry.
The department made the announcement Thursday to clarify the rules for the Advanced Manufacturing Production Tax Credit, which takes effect December 27 and will remain in place through 2032 to incentivize the use of U.S.-components in advanced manufacturing industries such as solar and wind energy, batteries and critical minerals.
Welcoming the news, the South Korean Ministry of Trade, Industry and Energy said the rules are more relaxed than before, so more of the country’s battery manufacturers and related businesses are eligible for the tax credit.
Industry and Energy Minister Ahn Duk-geun credited the outcome to close communication between Seoul and the concerned industries, as well as consultations between Seoul and Washington.
Ministry officials and battery industry representatives are expected to meet Friday to discuss the likely impact of the guidance and appropriate response measures.