Kia EV9 set to begin U.S. production in May, eligible for full tax credit until 2025.

Kia EV9 To Enter U.S. Production In May, Get Full Tax Credit By 2025

Kia is preparing to move production of the EV9 to the United States to make it eligible for tax incentives. The current factory location in South Korea prevents the EV9 from qualifying for any purchase tax incentives. However, once production moves to Georgia, the EV9 will at least partially qualify for a $7,500 tax credit, potentially making it more affordable for consumers. Kia is optimistic about the possibility of receiving the tax credit, but is closely monitoring any changes in government regulations before confirming.

Under the current rules of the Inflation Reduction Act, an EV must source a percentage of its battery materials from a country that is not considered a “country of concern” and have the battery itself produced in North America to qualify for the tax credit. While the EV9’s battery is currently made in South Korea using Chinese battery parts, Kia plans to include an EV battery facility in its new manufacturing plant that will go online later on, allowing the EV9 to potentially qualify for the full $7,500 tax credit by 2025.

Kia is on track to begin production of the EV9 in Georgia this May, with the brand investing $200 million to expand its existing plant in West Point, Georgia. The company has been testing pilot EV9s since early 2024 to ensure smooth production.

The Hyundai Motor Group’s Metaplant America has also made significant progress, with Kia and Hyundai delivering on their promises to produce EVs efficiently. This contrasts with other automakers and startups that have faced challenges in getting their manufacturing facilities up and running smoothly.

With the shift to US production and potential tax incentives, the EV9 is expected to become more competitive in the market. By 2025, the base model of the EV9 could cost around $48,895, putting it in direct competition with gas-powered three-row crossovers. This move is expected to make the transition to Electric vehicles easier for families looking for a spacious and efficient car for their daily needs.