South Korea's Hyundai Motor Group and battery maker SK On have signed a pact on the supply of electric vehicle (EV) batteries in North America, the companies said on Tuesday.
In a statement, SK On said the memorandum of understanding (MOU) lets the two companies cooperate in providing its batteries to the auto group’s plants in the United States after 2025 for production of electric vehicles.
It added that the partnership allows the two firms to shape a response to the US tax credit qualifications required under August's Inflation Reduction Act.
From next year, at least 40 per cent of the value of critical minerals for batteries will have to come from the United States or a US free-trade partner in order to receive tax credits, a threshold set to rise to 80 per cent in 2027.