Automakers often make bold claims when it comes to electric vehicles (EVs), but Kia seems poised to deliver on its promises. Kia and Hyundai are nearing completion of their ‘Metaplant’ battery and EV manufacturing facility in Georgia, which is expected to be operational soon. Furthermore, Kia aims to start production of its crucial model, the EV9, at its existing West Point, Georgia plant as early as May.
Currently, the EV9 is produced in South Korea and imported to the US. However, due to its production location, the EV9 does not qualify for federal EV tax incentives when purchased outright. This is significant given the high price tag of the EV9. Once production shifts to Georgia, the EV9 will no longer have this disadvantage and can at least partially qualify for the $7,500 tax credit.
Kia Transfers EV9 Production to the US
The Kia EV9 is currently manufactured in South Korea, making it ineligible for most purchase tax incentives. Moving production to the US will enable the EV9 to qualify for a tax credit, making it more competitively priced.
Despite the political uncertainties, Kia remains optimistic about the situation. The company anticipates that the EV9 production in mid-2024 will qualify for at least half of the tax credit, pending government updates regarding production requirements.
Under the current rules of the Inflation Reduction Act, EVs must meet specific criteria to qualify for tax credits, such as sourcing battery materials from non-“countries of concern” and North American battery production. While the EV9’s battery currently falls short of meeting these requirements, Kia plans to establish an EV battery facility at its new manufacturing plant in Georgia, ensuring full eligibility for the tax credit by 2025.
Kia is on track to commence EV9 production in May, with the addition of a $200 million expansion to its West Point, Georgia plant proceeding as scheduled. The brand has been fine-tuning its US production by creating pilot test EV9s since early 2024.
Kia’s commitment to delivering on its EV promises reflects a positive outlook for the industry. By moving EV9 production to the US, Kia is positioning itself competitively and dispelling the notion that EVs are not economically viable. Kia reports strong sales of the EV9 despite the absence of purchase tax credits.
The swift progress of Hyundai Motor Group’s Metaplant America, surpassing expectations for its operational timeline, sets Kia and Hyundai apart from other manufacturers facing manufacturing challenges. The EV9’s affordability is expected to increase significantly by 2025, potentially starting at $48,895, making it a compelling option for families looking to transition to electric vehicles.
Contact the author: kevin.williams@insideevs.com