Hyundai Motor Co. lost federal tax credits for three electric vehicle models in the US, dealing a blow to the Korean automaker’s American expansion plans despite its recent factory opening in Georgia.
The US Energy Department dropped the Ioniq 5, Ioniq 9, and Genesis GV70 from its list of vehicles eligible for $7,500 tax credits, while maintaining benefits for Kia’s EV6 and EV9 models. The decision cuts the roster of qualifying vehicles, including plug-in hybrids, to just 23 models.
Industry analysts say Hyundai’s models failed to meet the Inflation Reduction Act’s strict requirements for battery components and critical minerals sourcing, particularly rules limiting Chinese involvement in the supply chain.
The setback comes even as Hyundai pushes to deepen its US presence, having started production at its new Georgia plant in October. The company’s battery partner, SK On, is retooling its local factory while their joint 35-gigawatt-hour plant remains under construction.
Hyundai claims it will comply with subsidy requirements by mid-2024. Meanwhile, the company is hedging its bets by boosting hybrid vehicle production and developing extended-range EVs for the US market, acknowledging the uncertain future of EV incentives under potential policy changes.
