Trump’s Policy Shift Threatens $54 Billion South Korean Investments

South Korean companies are reconsidering their $54 billion investment plans to build electric vehicle (EV) battery plants in the US over concerns that President-elect Donald Trump might undo tax credits for EVs, Bloomberg News’ Heejin Kim reported.

Posco Future M, which supplies cathodes for General Motors Co., stated in a September filing that it is delaying the completion of its Quebec plant. I Photo: General Motors

Some companies have slowed or paused ongoing plant construction amid fears of reduced demand for EVs and uncertainty about Trump’s policies during a second term in the White House.

Posco Future M, which supplies cathodes for General Motors Co., stated in a September filing that it is delaying the completion of its Quebec plant.

Kenny Kim, CEO of SNE Research, a Seoul-based firm specializing in Korean battery makers, noted that many companies remain anxious about how significantly Trump might cut incentives for the EV market.

Trump has consistently criticized President Joe Biden’s efforts to subsidize EVs through the Inflation Reduction Act, his landmark energy bill. Trump’s plans include slashing fuel-efficiency requirements and potentially eliminating the $7,500 consumer tax credit for EV buyers.

Ending subsidies, tax credits, and incentives could jeopardize tens of thousands of US jobs and undermine years of progress in shifting the global EV supply chain away from China.

This move would also negatively impact Korean firms, key US partners in reducing reliance on Chinese suppliers, especially as they grapple with weaker EV demand and falling battery prices.