Kia’s U.S.-Built EV9: What You Need to Know

Introduction

Kia’s factory in Georgia is set to begin production of the electric EV9 this spring. While the vehicle will qualify for a federal EV tax credit, it may not receive the full $7,500 credit.

Current Situation

The EV9 models currently available in the U.S. are imported from Korea. In January, Kia sold 1,408 units with a goal of selling 2,000 units monthly. By shifting production to the U.S., buyers may be eligible for a $3,750 tax credit. However, new regulations stipulate that EV batteries must not contain more than 2% components from certain countries like China, Russia, North Korea, or Iran.

Local Production Challenges

Kia Georgia’s CEO, Stuart Countess, mentioned that initially, the locally-built EV9 models will use battery components from Hyundai Mobis or an external supplier. The plant will transition to using locally sourced and assembled batteries in the future.

Battery Factories

Hyundai, Kia, and Genesis are supported by two large battery factories being built in Georgia. One is a joint venture with LG Energy Solution, and the other is with battery supplier SK On. These facilities are expected to be operational next year.

Tax Credit Benefits

While the $7,500 tax credit for purchasing an EV9 outright may take time, leasing the vehicle can still qualify for the full credit. The Georgia factory has the capacity to produce 350,000 vehicles annually and will assemble the EV9 alongside other models but with a different powertrain installation process.