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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.

New electric Kia spied, looks like the production version of the Imagine Concept

Last we heard, Kia had plans to bring forth a production version of the Kia Imagine Concept vehicle. These spy photos today suggest that the intel was good, and Kia is well on its way to transforming its concept into a production car. The shape and proportions of the heavily camouflaged car seen in photos here are the two most intriguing elements. From the side, this vehicle looks like a short, lifted wagon. One look at the Imagine Concept is all you need to know where this one is going, though. Its roof slopes further downward the closer you get to the rear of the car, and despite the black tenting, we can still see that it’s going to have a heavily raked rear window like the concept. In a nutshell, the best way we can describe this thing right now is a cross between a wagon and a “crossover coupe.” Kia called the concept a sedan, but the higher-than-normal ride height suggests something in the same vein as the V60 Cross Country. One other big element in all of this is its powertrain. The Kia Imagine Concept is an electric car, so we can assume that Kia is going to keep the production version of it electric. ThereÂ’s no sign of an exhaust hanging out under there. ItÂ’s a pretty safe bet that this camouflaged tester is electric, which will just add to the legion of electric cars Hyundai and Kia have on the way or at dealerships now. The last new electric car out of Korea that we spied was the 45, which is yet another EV based on a recent concept car. Assuming the coronavirus didnÂ’t knock the Imagine ConceptÂ’s timing too far off track, we expect to see it revealed in full in 2021. The concept was revealed in Geneva, so that would suggest that itÂ’s definitely bound for Europe. However, itÂ’s unclear whether Kia will also sell the vehicle here. With the illusion of it being a crossover, Kia might try its luck. If there are Kias it reminds us of the most, though, itÂ’s the XCeed and ProCeed. Obviously, we donÂ’t get either here, which is a shame because the new ones are rather attractive. We will hopefully have more concrete news on this car in the coming months or in 2021. Related video:

Rumored Kia Soul EV spied for the first time

Up until now, we've only heard rumors about an all-electric version of the second-generation Kia Soul, but these spy shots seem to confirm that the Korean automaker is developing a zero-emission version of its quirky little box-back. Our most recent report has the Kia EV showing up in the first half of next year (likely for MY 2015) with a starting price of around $35,000 (presumably before tax credits) and a range of about 120 miles.
While the front and rear of this prototype remains heavily camouflaged, we can see some differences between this car and the 2014 Soul we saw earlier in the year at the New York Auto Show. For starters, the entire front end seems to be changed, including the hood, headlights and fascia, and we would expect Kia's so-called Tiger Nose grille to be blocked off for improved aerodynamics. Further supporting our shooter's claims that this is an electric vehicle is the fact that the Soul's exhaust pipe is missing from beneath the rear fascia.
Previous reports have indicated that the Soul EV will become "the very-first electic vehicle to be sold in the global market, including the US, Europe and China." It would appear that claim may be validated by technicality only - Nissan sells its Leaf in the US and Europe, and it will reportedly be sold as the Dongfeng Fengshen E30 in China.