South Korean automobile and battery makers have requested that the U.S. government temporarily grant them subsidies under the Inflation Reduction Act despite the usage of some key minerals from China in electric vehicle(EV) batteries.

According to the U.S. government's official gazette on Sunday, Hyundai Motor Group submitted a statement last Thursday that called the immediate elimination of key battery minerals from any "foreign entity of concern(FEOC)" from supply chains "unrealistic."

Stating that 100 percent of spherical graphite and 69 percent of synthetic graphite around the world were refined and produced by China in 2022, Hyundai said other countries are not likely to serve as a sufficient replacement within a short period of time.

The group proposed that Washington draw up a temporary list of key minerals that can be used in battery and parts production regardless of place of origin, including graphite.

In order to be eligible for EV subsidies under the act, battery parts must be obtained from sources not designated as an FEOC starting this year, and key minerals used in battery production from 2025.

In December, the U.S. government slapped the FEOC designation on practically all companies in China, reducing the number of eligible car models from 43 last year to 19 this year, with no Hyundai Motor vehicles qualifying since last April.

South Korean battery makers LG Energy Solution, SK on, and Samsung SDI as well as the Korea Battery Industry Association have also complained of difficulties, while Seoul also called for measures to assist in the businesses' effective adjustment.