REUTERS/Andrew KellySEOUL/WASHINGTON, Nov 9 (Reuters) - South Korean battery makers have urged the U.S. government to factor in realities of a complex supply chain for the industry and not hold the sector to "impossible requirements" ahead of the implementation of new U.S. EV tax credit rules.
LG Energy Solution Ltd (LGES) (373220.KS), SK Innovation's (096770.KS) SK On and Samsung SDI Co Ltd (006400.KS) expressed their concerns about the electric vehicle tax credit rules in comments submitted to the U.S. Internal Revenue Service (IRS).
LGES added in its comment that transforming the supply chain cannot occur "overnight" and urged the United States not to hold the industry to "impossible requirements and timelines".
Such market distortions could create artificial costs and barriers along the supply chain," SK On said.
Samsung SDI also urged the United States to implement rules that allow flexibility to meet supply chain requirements, adding that automotive supply chain contracts often last several years.