S Korea to offer $5.3b to support N America battery investment

SEOUL, April 7 (Reuters): South Korea on Friday said it will provide 7.0 trillion won ($5.32 billion) in financial support for its battery makers seeking to invest in infrastructure in North America over the next five years to help firms cope with the US Inflation Reduction Act.

Government support will include lowering lending rates and insurance premiums by as much as 20 per cent as well as providing more loans and tax credits for Korean firms' battery and material production facilities in the region, the industry ministry said.

The US Treasury Department last week unveiled stricter electric vehicle (EV) tax rules, requiring automakers to source a certain percentage of critical minerals for EV batteries from the United States or a US free-trade partner to qualify for new US federal incentives under the Inflation Reduction Act.