SK On's Lee Seok-hee on Trump's Re-election: "AMPC Subsidies Will Not Change Dramatically"

Meeting with Reporters Immediately After the Ministry of Industry Briefing on the 13th

Lee Seok-hee, President of SK On, is answering questions from reporters after attending a meeting with the Ministry of Trade, Industry and Energy held at the Korea Institute for Advancement of Technology in Gangnam-gu, Seoul on the 13th. Photo by Jeong Dong-hoon

Lee Seok-hee, CEO of SK On, predicted that there would be no drastic changes to the Advanced Manufacturing Production Credit (AMPC) even if the second term of the U.S. Donald Trump administration begins.

On the 13th, after the 'Battery Industry Impact Review Meeting Following the U.S. Presidential Election Results' held at the Korea Institute for Advancement of Technology in Gangnam-gu, Seoul, Lee told reporters, "The biggest impact on battery companies after the U.S. election is the AMPC, but I believe drastic changes are unlikely," adding, "Most battery factories are concentrated in districts represented by Republican lawmakers, and many of those who signed against repealing the Inflation Reduction Act (IRA) were re-elected this time."

He explained that amendments or repeal of the IRA require congressional approval and support, and Republican district lawmakers are unlikely to make such decisions due to concerns about reduced investment from overseas companies like those from Korea and the resulting economic downturn in their regions. The AMPC is a system that provides a tax credit of up to $45 per 1 kWh (kilowatt-hour) to companies producing battery cells and modules locally in the U.S.

Regarding the meeting, he said, "We discussed how the government and the battery industry should prepare and respond to the environmental changes with the formation of a new government in the U.S.," adding, "(Even if a new government takes office,) the electric vehicle market is not dying but inevitably moving forward. It is both a crisis and an opportunity."

He also emphasized the continued importance of the North American market. Lee stated, "SK On has established a structure for battery production locally in the U.S., including Georgia, Kentucky, and Tennessee, and we need to cooperate well with various other battery companies in the North American market."

Regarding the turnaround to profitability in the third quarter and future prospects, CEO Lee said, "I am grateful that our members united and worked hard to break the deficit streak in the third quarter," adding, "Production in the North American market is expected to continue increasing. Although it is difficult to make specific forecasts, I think it is important for our members to gain confidence from the third quarter's return to profitability."