Hyundai Motor Group and SK On, a company that makes batteries, signed a deal on Tuesday to sell batteries for electric vehicles (EVs) in North America.
In a statement, SK On said that the memorandum of understanding (MOU) lets the two companies work together to help make electric cars in the United States after 2025.
Related: Concerns about EVs in the U.S. have dimmed Hyundai’s bright profit outlook.
It was also said that the partnership gives the two companies a chance to figure out how to meet the requirements for U.S. tax credits set by the Inflation Reduction Act of August.
In order to get tax credits, at least 40% of the value of key minerals for batteries will have to come from the U.S. or a free-trade partner of the U.S. This number will go up to 80% in 2027.
