Typescript "This expression is not callable. Type 'never' has no call signatures."

When letting Typescript derive the type from useAtom, it warns me with the message “This expression is not callable. Type ‘never’ has no call signatures.”.

This is a code example:

interface CitySelection {
  title: string;
}
const citySelectionAtom = atom<CitySelection>(null);

When used in a component, the Setter is type as never:

const [citySelection, setCitySelection] = useAtom(citySelectionAtom);

calling setCitySelection triggers the Typescript warning because it’s automatically inferred type is never.