"US-China Tech War Intensifies as EV Battery Dominance Takes Center Stage"
The US-China tech war is now extending to the electric vehicle (EV) battery sector, with the US proposing rules that would limit tax credits for EV buyers if their cars contain battery materials from China and other "hostile" countries. China's Ministry of Commerce has criticized the rules, stating that they discriminate against Chinese companies and violate WTO rules. The US aims to reduce its dependence on China's supply chains, but these rules could hinder President Biden's efforts to drive EV sales and cut greenhouse gas emissions. China currently dominates the EV battery market, with CATL and BYD accounting for over half of global EV battery usage. South Korean battery makers like LG, Samsung, and SK On could benefit from the US-China tensions, but they are also facing challenges due to the geopolitical complications. Chinese battery firms are seeking to set up factories in the US to maintain their cost appeal and qualify for the EV tax credit, but some plans have faced scrutiny from US politicians.
