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Seoul seeks to turn end-of-life fuel-cell vehicles into power systems and domestic mineral supply source.
Opposition seeks to abolish purchase-time levy, while critics say weaker incentives could slow shift to cleaner cars.
Under the partnership, Nissan Shatai Group and Yamato Mobility plan to scale up production nationwide and to expand the range of vehicle types eligible for conversion in Japan where the adoption of EV trucks remains low.
Across the border, neighbour Shenzhen has the world's first and largest fully electric bus fleets. But Hong Kong has not been able to ramp up EV deployment for its public transport system fast enough to solve the city's air pollution problem.
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