South Korean companies are reconsidering investments in building electric vehicle (EV) battery plants in the United States, according to Bloomberg. [emphasis, links added]
Some South Korean companies have slowed or halted the construction of some U.S. battery plants over concerns about slackening demand for EVs and President-elect Donald Trump’s impending return to the White House, according to Bloomberg.
Trump’s proposed cuts to tax credits that have benefited EV makers are causing some Korean companies to rethink their $54 billion U.S. investment plans.
The price of lithium, a key mineral used in EV batteries, dropped nearly 90% from their highs in 2022 due to slower-than-anticipated EV adoption, Bloomberg reported.
Several South Korean companies announced plans for U.S. battery plants in 2022, promising the creation of thousands of jobs, following President Joe Biden’s Inflation Reduction Act being signed into law in August 2022, according to Bloomberg.
South Korea’s supply of batteries and battery materials has increased exponentially over the last few years, according to Aranca, a global research and analytics firm.
South Korean-owned gigafactories will account for 43% of U.S. battery production growth over the next five years, according to Benchmark Source.
Various Korean companies have been pumping billions of dollars into American manufacturing in recent years, with South Korean companies investing more in the U.S. than any other country in 2023.
Trump has long criticized EVs, and vowed in October 2023 to repeal the Biden administration’s EV measures, calling them “insane.”
The president-elect’s transition team is planning to undo the $7,500 consumer tax credit for EV purchases, Reuters reported last month.
On the campaign trail, Trump promised to “revolutionize” the U.S. auto industry and vowed to make interest on car loans fully tax-deductible to boost domestic auto production.
Trump has also proposed to offer tax breaks for purchasing vehicles manufactured in the U.S., emphasizing that it would boost domestic auto industry jobs and benefit American automakers, according to CBT News.
The president-elect has proposed introducing tariffs on various imported goods, causing some American companies to speed up shifting production out of other countries, such as China and Mexico.
Read rest at Daily Caller
Green Job Numbers have always been a crock of a well known substance.
Bidens EV Mandates like his campaign against household appliance and Fossil Fuels based upon Politics and the UN,CFR, Globalists demands and we want no part of any Global Government run by the United Nations or their Global Neighborhood either
“The price of lithium, a key mineral used in EV batteries, dropped nearly 90% …”
Ye olde law of supply and demand…..
Funny how that works. And it works every time. Same thing with the cost of labor, something the left refuses to see as they continue to raise the minimum wages above the value of the employees.
Regarding the price of lithium, the author mentioned the demand for LI decreasing but the other side of the equation is also important. Any chance that the mining and refining of LI has also increased?