Tax Benefits for 3 Korean Makers Total KRW19tn
Yuanta Securities said on Dec. 15 that LG Energy Solution, SK On and Samsung SDI are expected to get a tax benefit of 19 trillion won under the Inflation Reduction Act of the United States.
“The act will provide various incentives for electric vehicle (EV) buyers and the U.S. EV market will grow rapidly along with the U.S. demand for their batteries,” it said, adding, “EVs currently account for 4 percent of the U.S. automotive market, much lower than in Europe and China, and this means the U.S. EV market has huge growth potential.”
According to the company, the United States is expected to account for 44 percent of the global EV battery demand in 2025 and the three South Korean companies’ U.S. market share is expected to rise from 26.5 percent to 69 percent from 2021 to 2025 with the United States trying to curb China’s growth in the industry in various ways.
“The three companies are planning to build manufacturing facilities in the United States at a total investment of 40 trillion won until 2025 and about half of the investment is estimated to be deductible,” it said.