According to media reports, South Korean automakers Hyundai and Kia will be eligible for a $7,500 federal tax credit in the United States.
Earlier this year, Hyundai's new electric vehicle (EV) plant in Georgia officially began production. The company stated that U.S.-made EVs, including the 2025 IONIQ 5 and IONIQ 9, will qualify for the $7,500 federal tax credit.
In early January, Hyundai initially expected the IONIQ 5 and IONIQ 9 to be eligible for the tax credit. However, these models were absent from the list released by the U.S. Department of Energy (DOE) in mid-January. While Hyundai did not issue an official statement, speculation suggests that the exclusion was due to new battery sourcing rules.
The DOE's list also removed subsidy eligibility for Genesis, Hyundai's luxury brand. The only Hyundai Motor Group models listed were Kia's EV9 and EV6. At the time, a Hyundai spokesperson stated, "The Hyundai IONIQ 5 and Genesis GV7 are not currently eligible for the EV tax credit at the time of purchase. However, these models remain eligible for incentives through leasing."
South Korean media reports indicate that after regaining subsidy eligibility, Hyundai will begin large-scale production of the 2025 IONIQ 5 in the U.S. starting next month.
Meanwhile, battery manufacturer SK On's U.S. subsidiary, SK Battery America (SKBA), will start supplying batteries for Hyundai and Kia EVs, with production expected to begin as early as next month.
Hyundai and SK On's battery joint venture plant in Bartow County is located about five hours from Hyundai's EV plant. Once operational, the plant will have an annual battery production capacity of approximately 16.5 GWh, enough to power about 200,000 EVs.
At the same time, former U.S. President Donald Trump has threatened to eliminate EV incentives, including the $7,500 tax credit, which could disrupt Hyundai's plans.
With the launch of new models, the two South Korean automakers expect to see an increase in U.S. sales in 2025. To boost sales of the 2025 IONIQ 5, Hyundai will offer buyers a free ChargePoint home charger or a $400 public charging credit.
