Hyundai Motor’s electric vehicle models, including the Ioniq 5, Ioniq 9, and Genesis GV70, have been excluded from the list of vehicles eligible for U.S. government subsidies. This decision is attributed to the models’ failure to meet key battery-related requirements outlined by the U.S. Department of Energy. Despite Hyundai’s efforts to boost local production through its newly constructed U.S. electric vehicle plant, the company’s EVs did not qualify for the subsidies, which are crucial for price competitiveness.
As of January 21, industry sources confirmed that Hyundai’s Ioniq 5, Ioniq 9, and Genesis GV70 electrified models were removed from the subsidy list. Previously, all five electric vehicles from Hyundai Motor Group, including Kia’s EV6 and EV9, were initially listed as eligible for the $7,500 subsidy.
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However, only the EV6 and EV9 remained on the revised list, leaving 23 models in total eligible for government subsidies, which include both fully electric and plug-in hybrid vehicles.
The exclusion stems from the failure of these models to meet the criteria under the Inflation Reduction Act (IRA). The IRA stipulates that for a vehicle to qualify for the subsidy, its batteries must either be produced or assembled in North America, and the vehicle must not include critical minerals sourced from foreign entities of concern, such as China. Hyundai’s Genesis GV70 model, for example, was excluded in 2023 due to similar issues related to these requirements.
Hyundai is optimistic about meeting the IRA’s standards by mid-2025, leveraging local production capabilities in the U.S. to achieve compliance. The company’s new Georgia-based manufacturing plant, which began operations in October 2024, plays a crucial role in this strategy.
See also: Hyundai and Kia Set Record with Nearly 708,000 Electrified Car Exports in 2024
Hyundai’s battery supplier, SK On, is also working on increasing battery localization by adjusting production lines in Georgia. Furthermore, a joint Hyundai-SK On battery plant with an annual capacity of 35 GWh is under construction and is expected to begin production by the end of 2025.
The exclusion of certain models highlights ongoing challenges posed by U.S. policy shifts, particularly in light of potential changes to EV subsidies under President Trump’s administration. If proposed policy changes are enacted, domestic companies like Hyundai, Kia, and SK On may face additional setbacks in their U.S. operations.
Source: Businesskorea
