Kia EV9: Delayed Full-Scale US Production as it Awaits Local Batteries
Complexities of the Federal EV Tax Credit
The all-electric Kia EV9 is now being manufactured at Kia’s plant in West Point, Georgia. However, due to the complexities of the $7,500 federal EV tax credit, the company is not rushing to increase production.
Eligibility for Tax Credit
- The EV9 is currently only eligible for a $3,750 EV tax credit because of its overseas battery pack.
- U.S. production of the electric three-row SUV started several months ago.
- Kia’s local COO has also warned of a potential administration change impacting the credit.
Qualifying for the Full Tax Credit
According to Steve Center, the Chief Operating Officer of Kia America, the rules to qualify for the full tax credit are complex, particularly in regards to the assembly of battery packs. The EV9 is only eligible for $3,750 of the tax credit when purchased new because its battery does not meet the eligibility criteria.
Leasing for Full Tax Credit
Individuals who want to benefit from the full tax credit must lease the seven-seat electric SUV. However, there is hope for those who want to buy one outright.
Future Impact of Tax Credits
Steve Center mentioned in a recent interview that the upcoming election could impact the future of tax credits. He stated, “What will impact consumer demand is when you have a very strong policy reversal. If the administration changed, and the $7,500 tax credits were eliminated, that would impact a lot of middle-class and below buyers.”
Upcoming EV Factory and Battery Plant
In addition to upgrading its West Point plant, the Hyundai Motor Group is constructing a $7.6 billion EV factory and battery plant in Bryan County, Georgia. The site will start building the Hyundai Ioniq 5 next month, but the battery side of the site won’t be operational until approximately a year later. Kia has committed to switching the EV9 to locally-built batteries, although it is unclear if these batteries will come from the Bryan County site or be sourced from elsewhere.
Current Sales Performance
The Kia EV9 has been selling well, with 13,874 units sold during the first eight months of the year in the U.S.
