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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.

Did a US automaker blow the whistle on Hyundai, Kia fuel economy issue?

In all of the most hotly contested mainstream segments of the motoring universe, the difference of one mile per gallon averaged on a widow sticker can mean the difference between a sale and a walk-off - to say nothing of two or three mpg. So, when Hyundai and Kia were forced to reveal that many of their 40-mpg ratings were actually 38s and 37s, well, it made for big news.
It also, conceivably, made for a competitive disadvantage immediately, when the Korean automakers' products were being shopped versus the guys down the block. And it's that disadvantage that makes a recent story from Automotive News so juicy.
AN is reporting that Margo Oge, former head of the Environmental Protection Agency's Office of Transportation and Air Quality, got a tip in 2010 that Hyundai/Kia were "cheating" to get its impressive fuel economy numbers. The tip, said Oge (who retired from the EPA this past September), came from a senior vice president from a domestic automaker. The source was credible enough for Oge to launch an audit of the Hyundai figures, which ultimately lead to the debacle that we reported on a few months ago, and that the Korean company has been trying to bounce back from ever since.

Hyundai and Turin IED collaborate on Kite buggy concept for Geneva

The last time Hyundai's European Design Center collaborated with Turin, Italy's Instituto Europeo di Design (IED), we got the PassoCorto concept in 2014. That four-year-old vision made an appearance in recent news feeds, as a potential harbinger of a mid-engine Hyundai sports car when the Theta II engine arrives. The Korean carmaker is at it again with IED, and this time the two have worked up a doorles, roofless, windowless buggy referred to as the Kite concept, planned for display at next month's Geneva Motor Show. The full-sized scale model measures 12.2 feet long, 7.3 feet wide, and 4.7 feet high — that's about four inches shorter and one inch taller than a Mini Cooper, but 20 inches wider. Being a model, the Kite won't be fitted with any powertrain, but the students behind the project envision one brushless electric motor on propulsion duty. This is the first of IED's previous 14 automaker collaborations to have an interior, so the 15 students from nine countries who worked on the project did their homework, tapping Gruppo Sila for the shift-by-wire gearbox, and Sabelt for the seat and seatbelts. Guests to the stand will be able to experience the Kite concept through virtual reality, while the whiz-bang gearbox gets shown in a separate, dedicated area. The design school's annual project serves as the thesis project for the Masters in Transportation Design program. Last year's offering, the Scilla concept prepared with Pininfarina, was a 180-degree departure from the Kite, but the students spent time off-road recently with their McLaren crossover concepts of 2010. If you're smitten with this year's product, you won't be able to buy it, but Hyundai does sell an actual kite. Related Video: Featured Gallery Hyundai Kite Concept News Source: Car Body Design via Carscoops Design/Style Green Geneva Motor Show Hyundai Concept Cars Electric Off-Road Vehicles 2018 Geneva Motor Show