The inflation reduction act (IRA), which was signed into law by President Joe Biden in August 2022, offers up to $7,500 in tax credits to electric vehicles (EVs) assembled in North America including Mexico and Canada, and contains more than a certain percentage of core minerals extracted in the region. Kia has earlier unveiled its scheme to sell 1.6 million EVs in the global market by 2030.
The Mexican governor said through his Facebook post on May 15 that the South Korean company would make an investment for the expansion of its factory and produce two EV models. The Mexican governor who has visited South Korea to participate in a forum on cooperation methods between South Korea and Latin America posted photos of himself exploring an exhibition hall for EV9, Kia's full-sized sport utility vehicle (SUV). The SUV is equipped with 21-inch diamond-cut wheels and aero spoilers.
Nuevo Leon borders the United States along the Rio Grande, a 1,896-mile (3,051 km) long river. The region is known for industrial complexes and production plants, with about 600,000 workers and about 2,600 companies. About 270 South Korean companies have already expanded their business scopes into the industrial region.
Many South Korean companies are striving to meet the IRA incentive conditions. In September 2022, LG Energy Solution, the battery-making wing of South Korea's LG Group, partnered with battery material companies in North America including Electra and Avalon to build supply chains that meet the incentive conditions.
© Aju Business Daily & www.ajunews.com Copyright: All materials on this site may not be reproduced, distributed, transmitted, displayed, published or broadcast without the authorization from the Aju News Corporation.