According to South Korea's Central Daily News, Hyundai Motor Group has called on the US government to provide a temporary "exemption" not to exclude key materials purchased from China from the subsidy recipients of the Inflation Reduction Act, and has stated that it is "unrealistic" not to purchase raw materials from China at present.

　　Starting from 2024, the United States has further tightened its Inflation Reduction Act, which stipulates that electric vehicles produced in the United States that include battery components manufactured or assembled in countries such as China will no longer be eligible for tax credits of up to $7500 provided by the Inflation Reduction Act (IRA).

　　Under the new regulations, starting from 2024, electric vehicles that meet the exemption criteria shall not contain any battery components manufactured or assembled by Foreign Entity of Concern (FEOC), and starting from 2025, electric vehicles that meet the exemption criteria shall not contain any key minerals extracted, processed or recovered by FEOC.

　　And the United States has already included all Chinese companies in FEOC.

　　Under the competition between China and the United States, South Korean battery companies were the first to be affected.

　　Data shows that 80% of the previously subsidized electric vehicle models in the United States used batteries from Korean companies, concentrated in the three giants of LG New Energy, SK on, and Samsung SDI.

　　However, South Korean power battery companies rely more on Chinese raw materials. In the field of key minerals and processed products required for manufacturing power batteries such as lithium hydroxide, South Korea imports the most from China, accounting for 96.4%. The three major power battery companies also account for 77% of South Korea's total imports from China.

　　Therefore, after the upgrade of the new regulations in the United States, it is not Chinese companies that are the first to be affected, but South Korea.

　　Hyundai Motor Corporation of South Korea pointed out that as of 2022, 100% of global spherical graphite and 69% of synthetic graphite are produced and refined in China, and it is unlikely that other countries will find alternative solutions in the short term. For this reason, Hyundai suggests that the US develop a list of key minerals that are not restricted by origin and can be used for manufacturing power batteries and their components for a limited period of time, and include graphite in it.