Chung Eui-sun, chairman of Hyundai Motor Group, met with Jose Fernandez, US Under Secretary for Economic Growth, Energy, and the Environment to discuss pending issues related to the US Inflation Reduction Act (IRA), such as non-payment of subsidies for Korean electric vehicles.
According to the business community on January 11, Chairman Chung and Vice Minister Fernandez had a meeting at a hotel in Seoul the day before.
At the meeting, Chairman Chung explained to Vice Minister Fernandez the progress of the construction of an electric vehicle-only plant in Georgia and emphasized the need for flexible measures for companies that have decided to invest in the US in connection with the implementation of the IRA.
On this day, in addition to the IRA issue, the two are said to have shared opinions on various issues across the industry, such as global supply chain, electrification, and future mobility.
Last year, Hyundai Motor Group’s electric car sales in the US market totaled 58,028 units, a three-fold increase compared to 2021.
However, with the implementation of the IRA in August of last year, the Ioniq 5 and EV6 produced in South Korea were no longer eligible for a tax deduction of up to $7,500.
In response, the South Korean government considered the time it would take for Hyundai Motor Group to set up production facilities in the US as three years and requested a delay in the implementation of the electric vehicle subsidy restrictions for three years.
Hyundai Motor Group is currently building an electric vehicle plant in Georgia, USA, with the goal of completion in the first half of 2025.
Meanwhile, Vice Minister Fernandez visited major semiconductor and battery companies such as Samsung Electronics and LG following Hyundai Motor Company to discuss joint technology development and recovery of the global supply chain.
