A new law that does not include EVS assembled outside North America from tax credits could accelerate the South Korean firm’s construction plan.
In May, the automaker stated that it would begin construction of the facility by early next year, with commercial production expected to commence in the first half of 2025.
The facility would have an annual production capacity of 300,000 units.
Now, the company is looking to begin construction later this year, with plans to start commercial production in the second half of 2024, reported Yonhap, citing a source.
On 16 August, US President Joe Biden signed a law on a $430bn bill, which terminates tax credits for about 70% of the 72 EV models that were earlier eligible for the credits.
Meanwhile, South Korean Industry Minister Lee Chang-yang stated at a parliamentary session that the country will evaluate whether to file a complaint at the World Trade Organization (WTO) over the US Inflation Reduction Act.
Chang-yang added that the US law could not only disrupt WTO rules but also a bilateral free trade agreement between the two countries.
Image: The facility would have an annual production capacity of 300,000 units. Credit: LEEROY Agency from Pixabay.