Chinese Battery Firms Invest in South Korea to Meet US Tax Credit Rules

Chinese battery materials firms are seeking more partnerships with South Korean firms to meet the requirements of the U.S. electric vehicle (EV) tax credit rules, which was designed to lower U.S. reliance on China’s supply chains.

A staff member hooks up a charging cable to an electric vehicle (EV) at a charging station in Liuzhou, in China's Guangxi Zhuang Autonomous Region, on July 31, 2017. Reuters

Chinese battery materials firms have been increasing their investments in South Korea to meet the requirements of the United States electric vehicle (EV) tax credit rules and gain access to the U.S. market.

Over the past months, Chinese companies have entered into collaboration projects with South Korean firms to build five battery materials plants valued at up to 5.6 trillion won ($4.4 billion), Reuters reported.