The Czech Republic has approached LG Energy Solution, Samsung SDI and SK On to attract investment from the three Korean battery manufacturers, in a preemptive move to build a battery value chain in the European country.

The focus is on whether Czech will be able to divert the market’s attention drawn to North America after the U.S. Inflation Reduction Act (IRA) took effect.

Gustav Slamecka, ambassador of the Czech Republic to Korea, said “the country is in talks with Korean battery companies on the investment plan,” according to a report from MF DNES, a Prague-based daily newspaper.

This is not the first time that Czech has wooed global battery firms. The country has pledged to supply more than 500,000 electric vehicles (EV) by 2030. Earlier, Czech’s former Trade Minister Karel Haylicek expressed his hopes to attract overseas investment for EV plants there, called Gigafactory, during an interview with Czech’s CTK news agency. He also said Skoda of Volkswagon and LG showed interest on the offer.

Skoda is under negotiation with the Czech government on the construction of the Gigafactory there. The investment is worth 7.4 billion won and is expected to be built near the country’s western city of Pilsen.

The country is now appealing to Korean battery giants, in a strategic move to widen its battery supply chain there. But outlook remains cloudy over whether the country will be able to attain its goal at a time when the U.S. is moving to offer large subsidies to Korean battery firms via the IRA. Starting from this year, the U.S. is providing a tax credit of $35 per kilowatt hour for a battery cell produced and sold in the country.

Gustav Slamecka also reiterated the country’s strong willingness to attract investment from Korean battery firms, saying that “negotiations are still underway.” He expected a number of partner firms to make inroads into the country for investment if Korean firms make a final decision on the drive. This means the country can build an overall battery value chain there, which encompasses not just the battery plants, but battery recycling and lithium mining.

Another possible scenario is the exchange of battery plans and nuclear power plants. Korea’s President Yoon Seok Yul and his administration pays attention to Czech as a potential candidate for exports of nuclear power plants.