hyundais first us made ev ioniq 5 to debut with full tax credit eligibility.jpg
Hyundai Motor’s top-selling electric vehicle (EV) is slated to be the first model to be produced at the company’s new manufacturing plant in the United States.
Hyundai Motor North America CEO Jose Muñoz emphasized the strategic move, describing it as an obvious choice given the Ioniq 5’s status as the company’s most popular EV.
Hyundai’s IONIQ 5. (Photo : Image via Hyundai)
Leading EV Model Production of Hyundai at New US Plant
Hyundai’s first EV to be manufactured in the US is set to be the tax credit-eligible Ioniq 5. While it remains uncertain whether all units will adopt Tesla’s NACS charging standard, reports suggest that the Hyundai Ioniq 5 will lead the lineup from the company’s newly established Georgia facility later this year.
Automotive News reported that Muñoz anticipates that the domestically produced variant will qualify buyers for the full $7,500 federal EV tax credit, a benefit not accessible to the South Korea-manufactured model, except via a leasing loophole.
Although Hyundai plans to commence Ioniq 5 production at the Georgia plant in October, battery manufacturing won’t commence on-site for approximately a year. In the interim, the company will rely on batteries from a Hungarian factory operated by Hyundai’s battery production partner, SK On.
Also serving as the global COO of Hyundai Motor Group, Muñoz emphasized that relocating the compact electric crossover production to Georgia was a decision to fulfill the firm’s commitment to innovation, excellence, and the future of the automotive industry.
Currently imported from South Korea, Muñoz highlighted the vehicle’s status as the top-selling model, saying that it is absolutely a bestseller. In 2023, the Ioniq 5 recorded sales of 33,918 units, marking a substantial 48 percent surge from the previous year.
This figure notably surpasses the sales performance of its sedan counterpart, the Ioniq 6, which tallied 12,999 sales in the same period. The Kona EV, featuring an electric variant within the subcompact crossover category, also garnered 8,866 sales.
Within the $7.6 billion EV complex, Hyundai’s assembly plant, the Metaplant, operates alongside a collaborative battery factory with LG Energy Solution.
The EV manufacturing line is slated to be operational in October, marking the commencement of Hyundai’s US production of the Ioniq 5. However, the battery segment of the newly established assembly plant is expected to come online approximately a year later.
To bridge this gap, Hyundai intends to procure batteries for the Ioniq 5 from a facility in Hungary operated by SK On. According to Muñoz, once the US assembly commences, the Ioniq 5 is anticipated to qualify for the $7,500 federal tax credit.
Muñoz cited the need to secure critical battery components and materials to ensure proper sourcing and assembly processes. Hyundai is currently extending the federal tax credit only to consumers who choose to lease.
Many EVs for sale do not qualify for the whole federal tax credit under the Inflation Reduction Act since the vehicles or components are not built in the US.
However, buyers can lease the EV and take advantage of a key loophole under the said law to earn them $7,500 off. Muñoz remarked that by October, they will be able to extend this benefit to retail customers who pay cash or opt for financing.
