October 6, 2022

Hardwood Paroxysm

All Latest News For You!

The European Union and Korea protest against the new US incentives

Emissions reduction or trade war? – Good news for the environment – The US Senate has restored credit tax To buy electric car – You risk sparking a trade war because the rules will penalize European and Korean cars. Indeed, representatives of the European Union and South Korea have declared that the new rules can discriminate against cars manufactured abroad, and may even violate treaties of the World Trade Organization, the World Trade Organization. The Pharaonic Inflation Reduction Act passed by the US Senate last Sunday is in effect 430 billion dollarswill increase the maximum tax credit (currently $7,500) granted to those who buy electric vehicles but contain many of them. restrictionsincluding those that only allow vehicles assembled in North America to receive credit.

European and Korean protests – This limitation is part of a more complex plan that also includes provisions designed to limitImport battery components, including “important” minerals that currently largely come from China. Reuters quoted European Commission spokeswoman Miriam Garcia Ferrer as saying: “We believe these rules are correct Discrimination against foreign producers Compared to the United States of America, this means that it does not comply with WTO regulations.” The spokesperson noted that the EU agrees with the US government that tax breaks are an important incentive to drive demand for electric vehicles and promote the transition to sustainable transportation. However, they must be These measures are fair and non-discriminatory, and therefore the European Union is asking the United States to remove them discriminatory elements from the invoice. South Korea also expressed concern that the bill might violate WTO rules and a bilateral free trade agreement signed with the United States, with the Commerce Department calling on US authorities to relax requirements on battery components and vehicle assembly. The department also met with representatives from Hyundai Motor and battery makers LG Energy Solution, Samsung SDI and SK, who have requested political support so that this law does not put them in a competitive position in the US market.

See also  “The US crisis is different from the European crisis” - La Voce di New York

breached agreements – The Korea Automobile Manufacturers Association (KAMA) notes that South Korea It also has incentives for electric vehicles produced in the United States and has asked the United States to include electric vehicles and battery components produced or assembled in South Korea under the above-mentioned FTA in the incentive program. Hyundai said it was “disappointed that this legislation severely limits access to electric vehicles and the choice of American consumers, slowing the transition to sustainable mobility.” In fact, the US Department of Transportation has asked states to set emissions reduction targets (over here news). Remember, the company currently imports its flagship electric vehicles from Korea but recently announced $10 billion in investments in the United States, including electric vehicle manufacturing facilities in Alabama and Georgia.

someone is happy – if The overwhelming power of China In the sector of components needed to build batteries and electric motors, it is known and not only lithium but also cobalt And the graphite (over here to know more). These physical measures, which will come into effect in brackets — on December 31, 2023 for components “manufactured or assembled by a relevant foreign entity” and on December 31, 2024 for “significant” battery metals” — will accelerate the creation of a U.S. mineral extraction supply chain and build Components of the batteries and the batteries themselves. These are as important components as chips, and so we are not surprised to see that the government is pushing in that direction as it has already done for semiconductors (over here news). The mining companies The United States is clearly very interested in this prospect of significant growth for their business. Todd Malan, Talon Metals’ chief foreign affairs officer, told Cleantechnica, for example, that “the Inflation Cut Act is a huge boost to the entire US electric vehicle supply chain, from mining to battery production to material recycling. The new rules ensure that workers will contribute.” In the national factories for extracting and processing minerals in the transition to electric cars.The political consensus between the two parties that Suppliers Electric vehicle batteries are a matter of national security.”

See also  Batman crosses $300 million at the US box office - Nerd4.life