South Korean President Yoon Suk Yeol met with Tesla CEO Elon Musk in Washington, D.C., right this moment throughout a six-day go to to the US. The assembly was at Musk’s request to debate the potential of constructing a Tesla Gigafactory in Korea.

Yonhap, a Korean information company, summarized the assembly, saying that Yoon emphasised that “South Korea boasts world-class manufactured robots and a complicated labor pressure, making it a perfect location to run a Gigafactory.”

And Yoon was instantly quoted as saying:

“Ought to Tesla determine to take a position, we’ll present lively assist when it comes to location, workforce and taxes”

Of their earlier assembly, Yoon had an identical message – that Korea has a world-class automotive business and that Korea would work to enhance laws to permit for simpler international funding into the nation. We have now no transcript of that assembly, however it appears like he was extra direct on this assembly – promising particular direct assist to Tesla quite than generalized authorities motion on laws.

Musk reportedly responded by stating that he expects to go to South Korea and that the nation stays a number one candidate for a Gigafactory.

Korea was already on Tesla’s shortlist for potential new Gigafactory places, and Yoon and Musk met nearly in November to debate this risk. On the time, rumors included that Tesla was contemplating a Gigafactory in Mexico or Canada.

Since then, Tesla has introduced that it can construct a Gigafactory in Mexico, which could have thrown some chilly water on rumors of different places. Nevertheless it seems that Tesla continues to be concerned about different places as electrical automotive gross sales are set to see “explosive development” worldwide within the coming years.

Given Tesla’s aim to increase gross sales by 50% per 12 months for the foreseeable future, with a possible (and fairly optimistic) aim of promoting 20 million automobiles in 2030, it’s going to want a variety of factories to get there.

Tesla already operates one manufacturing facility in Shanghai, which is a comparatively quick 500-mile jump over the Yellow Sea away from Korea. However in East Asia, a area the place half of the world’s inhabitants lives, there’s definitely room for a couple of manufacturing facility.

Korea is popping out to be a serious participant within the EV business. Korean battery suppliers LG Chem, Samsung SDI, and SK On are cooperating with many automakers across the globe, and Hyundai and Kia are among the many largest electrical car producers.

Plus, Korea is a free commerce associate with America, whereas China isn’t. This might be related given the brand new battery part and significant mineral guidelines within the Inflation Discount Act, requiring the home or free commerce manufacturing of battery parts and significant minerals, respectively. Whereas any Korean Gigafactory would primarily serve Asian markets, this might add some flexibility for Tesla when it comes to processing or recycling battery minerals.

Korea, specifically, felt spurned by these guidelines as a result of additionally they require that vehicles endure closing meeting in North America (except you lease them, an interpretation that Korean automakers pushed for). This has precipitated many Korean automakers to decide to constructing factories within the US, so having an American automaker set up a manufacturing facility in Korea will surely be truthful play in response.