Seoul, Nov 15 (IANS) South Korean battery stocks plunged on Friday on reports that President-elect Donald Trump’s transition team plans to scrap the $7,500 tax credit for EV purchases as part of broader tax legislation.
Trump campaigned on ending the consumer tax credit, a key part of President Joe Biden’s Inflation Reduction Act (IRA). And the transition team said Trump would keep his pledges, according to earlier news reports.
The news added to woes of local EV battery stocks already struggling with the EV “chasm,” which occurs before the widespread adoption of all-electric vehicles, reports Yonhap news agency.
LG Energy Solution, the country’s leading car battery maker, slumped 12.09 percent to 371,000 won, No. 2 maker Samsung SDI retreated 6.81 percent to 246,500 won, and SK Innovation, which owns an 89.52 percent stake in No. 3 firm SK On, shed 6.43 percent to 96,100 won.
The broader Korea Composite Stock Price Index, or KOSPI, only slipped 0.08 percent. Battery materials shares also suffered declines.
POSCO Future M plunged 9.5 percent to 167,600 won, while EcoPro Materials plummeted 15.06 percent to 89,700 won, and L&F dipped 11.04 percent to 97,500 won.
The IRA, signed into law by the Biden government in August 2022, offers up to $7,500 in tax credits to each buyer of a new EV that was assembled in North America and made with minerals mined and processed in the U.S. or countries and regions that have free trade agreements with Washington.
Meanwhile, South Korea is closely monitoring potential changes to U.S. policies on electric vehicles (EVs) under the incoming Donald Trump administration, but no change has been confirmed, the industry ministry said.
The Ministry of Trade, Industry and Energy made the statement after a Reuters report suggested that Trump may be seeking to end the up to US$7,500 consumer tax credit program for EV purchases, a key component of President Joe Biden’s Inflation Reduction Act (IRA).
“The government is closely monitoring policy trends in the new U.S. administration. The abolition of the IRA is an issue that has not been confirmed,” the ministry said in a released statement.
“The government has been maintaining close communication with businesses and reviewing various scenarios to prepare for uncertainties,” it added, noting it will also continue close consultations with the U.S.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
