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Really?
Isn't the objective of a legitimate business to make money?

'EV battery makers admit — We can’t survive without free money.'

'Trump EV Skepticism Threatens $54 Billion in Korean Investments
South Korean battery makers are rethinking US investment plans
President-elect has blasted Biden-led incentives to buy EVs'

<https://archive.is/VVg4q#selection-1347.0-1361.59>

'South Korean companies are reconsidering their $54 billion investment
blitz to build electric-vehicle battery plants in the US over concerns President-elect Donald Trump could undo tax credits for EVs.
Some Korean companies have slowed or hit the pause button on any ongoing construction of some plants because they’re concerned about reduced
demand for EVs and what Trump would do during a second term in the White
House, people familiar with the matter said, asking not to be identified
due to the sensitivity of the issue. Posco Future M, which makes
cathodes for General Motors Co., said in a filing in September that it
is delaying the completion of its plant in Quebec due to “local conditions.”

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Although companies haven’t taken any action yet, many are “anxious”
about to what degree Trump would slash government incentives for the EV
market, said Kenny Kim, chief executive officer at SNE Research, a
Seoul-based research firm that focuses on Korean battery makers.
Read More: Tesla, Rivian Drop on Report Trump Wants to End EV Credit
Trump has long criticized President Joe Biden’s efforts to subsidize EVs through his landmark energy bill, the Inflation Reduction Act. The
incoming administration is looking to slash fuel-efficiency requirements
and, according to a Reuters report last month, could eliminate the key
$7,500 consumer-tax credit.
Ending hundreds of billions of dollars in subsidies, tax credits and
other incentives would threaten tens of thousands of US jobs and undo
years of work shifting the global EV supply chain away from China. It
could also hit the earnings of Korean firms, key US partners in the
effort to reduce reliance on Chinese suppliers, at a time when they’re already suffering from weaker demand for EVs and falling battery prices.


“We are paying attention to every single word from Trump” about EVs,
said Byeonghoon Kim, chief executive officer at Ecopro Materials Co., a supplier of precursor materials for the EV batteries used by Ford Motor
Co. and General Motors Co.
“We have considered the Inflation Reduction Act as a very important
issue so far,” Kim said. “If there’s any change in the policy, we may have to change our strategy too.”


The Biden administration last week offered $7.5 billion to help finance
a joint venture between Samsung SDI Co. and Stellantis NV to create cell manufacturing plants in Indiana. However, the Trump transition team was
quick to call the offer into question. Vivek Ramaswamy, one of the two nominated co-chairs of Trump’s soon-to-be Department of Government Efficiency, said in a post on X that the department would scrutinize the facility.
South Korea’s three largest battery makers — Samsung SDI, LG Energy Solution and SK On Co. — have announced 15 battery plants in the US, the
most aggressive investment drive of any of the world’s three major
battery hubs — China, Japan and South Korea.
Half of the Korean plants were announced after the Inflation Reduction
Act was signed in 2022, promising to create more than 20,000 jobs in
total, located largely in the so-called “battery belt,” which stretches from Michigan through Ohio and Kentucky to Georgia.
“South Korea has contributed to creating jobs and investments in the
Rust Belt,” said Park Tae-sung, vice chairman at the Korea Battery
Industry Association. Having Korean battery suppliers is also beneficial
for the US to win in the competition against China-dominated supply
chains for EVs, he said, adding the group is in talks with US
authorities to lobby to keep the credits.
EV batteries accounted about half of all of the foreign direct
investment and reshoring from overseas in the US between 2021 and the
first quarter of 2024, according to Reshoring Initiative. Korean FDI and reshoring in the US created 20,360 jobs in North America in 2023, more
than any other country, the data show.
Battery Work
EV cells created the most jobs in the US among products made by
reshoring or FDI initiatives
52%
EV Batteries
22%
Chips
12%
Solar
8%
Rare Earths, Lithium, Hydrogen
6%
Pharmaceuticals
Source: Reshoring Initiative
Note: Data is between 2021 and 1Q of 2024.
Cutting tax credits would hit Korean battery companies hard at a time
they’re suffering from weaker demand for EVs. Prices of lithium, a key mineral tied to the selling price of an EV battery, plunged nearly 90%
from their highs in 2022 due to slower-than-expected adoption of EVs.
LG Energy Solution, a key partner of GM, booked about 1 trillion won
($773 million) of IRA credits in its accounts so far this year but
analysts expect a net loss for the fiscal year of 2023. SK On, the
partner of Ford, also received about 211 billion won in tax credits from
the US during the first three quarters, yet still reported an operating
loss during the period.
‘Disaster’ for Korea
Korean companies also worry Trump might allow Chinese battery companies
to enter the US. China’s Contemporary Amperex Technology Co. Ltd, or
CATL, said it will consider building a US plant if Trump opens the door, Reuters reported last month.
The IRA has so far blocked investments from China, asking carmakers to gradually reduce sourcing critical battery minerals from “foreign
entities of concern.”
“China’s entry to the US would be a disaster for Korea,” said Park Chulwan, a professor in the car engineering department at Seojeong
University. “Chinese battery firms would offer much lower prices.”
Still, some are optimistic Trump will not cut the credits for battery
makers given their plants are mostly located in Republican-governed
states.
“I don’t think there’s a high chance they will reduce the benefits in
the Inflation Reduction Act,” said Kitae Kim, chief executive officer at SungEel Recycling Park Indiana, a battery recycler under construction in Whitestown, Indiana.
The state of Georgia, home to four SK On plants, will also help Korean companies “maximize their ability to efficiently reach consumers across
the country,” Georgia Department of Economic Development Commissioner
Pat Wilson said in an email to Bloomberg News.
“The US market is still the most important consumer market in the
world,” Wilson said. “Korean companies knew that prior to the Biden Administration, and that fact will not change with the new
administration.'

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