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S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.

Automatically efficient | 2017 Kia Optima Hybrid Quick Spin

Automakers are stuck between a rock and hard place with hybrid vehicles. On one hand, efficient hybrids are a necessary evil – for lack of a better phrase – to hit increasingly stringent CAFE standards. But on the other hand, low fuel prices mean it takes an increasingly long time for consumers to see a return on the investment of a hybrid's price premium. These factors have pushed automakers even harder to squeeze every mile per gallon possible out their hybrid offerings. That's inevitably led to powertrain innovations designed to maximize just how long and how far hybrids can run on pure electric power and how often the gas engine can shut down. Occasionally, this doesn't work out all that well – as is the case with the new Nissan Rogue Hybrid, for instance – but there are companies getting things right. Kia, with its 2017 Optima Hybrid, is one of them. Drive Notes Kia didn't try to get too creative with the Optima Hybrid's powertrain for 2017. There's a 2.0-liter, naturally aspirated, four-cylinder gas engine, a 38-kilowatt electric motor, and a 1.62-kWh battery pack. Total system output is 192 horsepower and 271 pound-feet of torque, with EPA estimated fuel economy ratings of 39 miles per gallon in the city and 46 mpg on the highway for a 42-mpg combined rating. That's all spiffy. But taking a six-speed automatic and replacing the torque converter with a clutch and the electric motor, Kia built a hybrid sedan that smoothly intertwines disparate power sources as well as a conventional hybrid like a Toyota Prius, while allowing the Optima Hybrid to take greater advantage of zero-emissions systems. Lift off the throttle and the four-cylinder engine shuts down and lets the 50-hp electric motor handle light, constant-throttle cruising below 62 miles per hour. Dig deeper into the gas, and the petrol powerplant quickly restarts and delivers the bulk of the Optima's power for heavy acceleration and higher-speed conditions. The Optima's back and forth is rarely disjointed – Kia's hybrid feels a lot like its conventionally powered model in normal driving. It's only under sudden, wide-open throttle situations, where the hybrid systems feel caught off guard, that the Optima Hybrid feels flatfooted. A less obvious benefit of the six-speed automatic, of course, is that it leads to quieter operation. There's no rubber-band-like revving like you'd get with a CVT because the transmission can actually shift up a gear.

2014 Kia Sorento

Big Changes Below, But Just A Little Off The Top
It happens all the time. Three or four years into an automobile's lifecycle, the manufacturer goes back to the drawing board, making what it hopes are vital improvements to keep its product at the top of the sales charts. It's true of the vehicle we're discussing today, the 2014 Kia Sorento, but unlike many midlife facelifts, most of what's new here can't be seen with the naked eye.
Yes, there are the normal changes to the front and rear fascias, and a few nips and tucks here and there to improve the crossover's outward appearance. But, for the first time in as long as we can remember, the big news here is that the new Sorento is actually riding atop a new platform, according to Kia.