Enchem to Receive $8 Million in U.S. Tariff Refunds... Cumulative Tax Benefits Expected to Reach $68 Million

U.S. Subsidiary Secures About KRW 8 Billion in IEEPA Tariff Refunds

Cumulative AMPC Benefits Reach KRW 68 Billion Over Four Years

"Accelerating Expansion Into North American ESS Market After EV Success"

Enchem is beginning to see tangible results from its North American business investments, securing large-scale tariff refunds and Advanced Manufacturing Production Credit (AMPC) benefits by leveraging its local production base in the United States.

Exterior view of Enchem Georgia plant. Enchem

On June 15, Enchem announced that its U.S. subsidiary is currently undergoing the tariff refund process under the International Emergency Economic Powers Act (IEEPA). The total amount filed is $5.45 million (approximately KRW 800 million), of which $3.44 million (about KRW 500 million), or around 63%, has already been refunded. The remaining amount is also expected to be refunded in sequence according to U.S. government administrative procedures.

This measure follows a ruling by the U.S. Court of International Trade (CIT). As a result, the tariff burden incurred during local distribution and import processes has been alleviated, which is expected to contribute to improved financial soundness and cash flow for the U.S. subsidiary.

Enchem emphasized that by expanding its benefits from the Advanced Manufacturing Production Credit (AMPC), it is also demonstrating its competitiveness in the North American market. The accumulated AMPC benefits secured by Enchem's U.S. subsidiary from 2023 to 2025 amount to approximately $29.78 million (about KRW 4.5 billion). With an additional $15 million (about KRW 2.3 billion) expected to be received this year, the cumulative four-year benefit is projected to reach a total of $45 million (about KRW 6.8 billion).

Recently, the North American battery market has been expanding beyond electric vehicles (EVs) to include the energy storage system (ESS) sector. In particular, the explosive expansion of artificial intelligence (AI) data centers and increased investment in power infrastructure have driven a surge in ESS demand across North America, which in turn is fueling the need for long-life and high-safety electrolytes—key factors determining battery lifespan and safety.

Enchem plans to accelerate its entry into the ESS market, leveraging the competitiveness it has already established in the electrolyte market for EVs.

An Enchem representative stated, “These tariff refunds and AMPC benefits are not merely incidental policy gains. They are the result of a global supply chain strategy in which we took calculated risks and proactively established a local electrolyte production system in Georgia, United States. As the U.S. battery industry increasingly values transparency in raw material sourcing and supply chain stability centered on allied nations, the value of Enchem's local production base will only continue to rise.”

This content was produced with the assistance of AI translation services.