President Joe Biden is open to continuing talks with South Korean leaders who have expressed concerns about how the Inflation Reduction Act makes their EVs ineligible for federal tax incentives.
For electric vehicles to be eligible for tax credits under the new laws, they don’t only need to be assembled in North America but their battery packs also need to be assembled locally and the battery materials used also need to be sourced directly or from countries the U.S. has a free trade agreement with. Popular Hyundai and Kia models manufactured exclusively in South Korea do not meet these eligibility requirements.
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