Good things are in store for Kia fans considering the purchase of an EV in the next few years. Korean news outlets Maeli Business News and SBS have revealed that Kia will enter EV production in the United States starting in 2024. This move would qualify the automaker for new EV tax credits outlined in the recently passed Inflation Reduction Act.
Although details have not yet been clarified, this news should come as no surprise as the Inflation Reduction Act includes new provisions that make foreign-built electric vehicles ineligible for tax credits. Specifically, EVs must undergo final assembly in North America in order to qualify for credits. Due to these changes, many manufacturers have recently announced US manufacturing facilities or announced plans to build EVs in the US.
In a recent report, Hyundai was named as one of the automakers making concerted efforts to accelerate US production timeline, with plans to start construction on its US EV plant by the end of 2022. The $5.5 billion facility, which expects around 300,000 annual EV production, was initially slated to be built sometime in 2023, with commercial production not beginning until 2025.
Since Hyundai and Kia are related companies which share the E-GMP EV platform, it is no surprise to see Kia following suit and solidifying plans for US manufacturing.