The $430 billion bill, which President Joe Biden signed into law in August, changed the rules for the $7,500 EV tax credit.

Now, for a vehicle to be eligible for the EV tax credit, it must have been assembled—and have a battery built—in North America, with battery minerals mined or recycled on the continent. The first requirement goes into effect immediately, while the rest of the requirements are being phased in. By 2024, at least 50% of EV batteries must come from the U.S., Canada, or Mexico, with that figure rising to 100% by 2028.

The requirement that vehicles be made in America means Hyundai Motor Co. and Kia Corp. are excluded from the tax credit because they do not make EVs in North America.

South Korea wants the U.S. to offer federal EV tax credits for these automakers anyway because they have planned U.S investments.

Hyundai Motor Group broke ground on a $5.54 billion EV and battery plant in the U.S. in October and has announced plans to invest over $10 billion in the United States by 2025 to strengthen its collaboration with U.S. firms in advanced technology, such as robotics, autonomous driving and artificial intelligence.

South Korea also warned the new law may violate trade norms such as the U.S.-South Korea free trade agreement and World Trade Organization agreements.