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Kia has decided to produce the large electric sport utility vehicle (SUV) EV9 at its U.S. factory starting from the second quarter of next year. This is the first time the company has decided to manufacture a dedicated electric vehicle at an overseas plant, following the recent domestic launch of the model.

Kia Motors America announced on the 12th (local time) that it has finalized plans to produce the EV9 at its existing assembly plant in West Point, Georgia, with an investment exceeding $200 million (approximately 250 billion KRW). This plant currently manufactures local exclusive SUVs such as the Telluride, as well as the Sorento, Sportage, and the K5 sedan. The EV9 is a three-row electric SUV recently delivered to customers in Korea, targeting the U.S. market segment that prefers large vehicles.

Kia factory in West Point, Georgia, USA

Until now, the company has produced dedicated electric vehicles only in Korea. The EV6, which was the first to apply an electric vehicle-exclusive platform, is manufactured in Hwaseong, while the domestically launched EV9 is produced at the Gwangmyeong plant. The K3 electric vehicle made at the Yancheng plant in China is a derivative of an existing internal combustion engine model. Its affiliate, Hyundai Motor Company, has expanded its electric vehicle production bases domestically (Ulsan and Asan) as well as in the Czech Republic, Indonesia, Singapore, and the United States.

Even if the EV9 is produced in the U.S. starting next year, it is uncertain whether it will qualify for tax credit benefits under the Inflation Reduction Act (IRA). To receive a tax credit of up to $7,500 when a U.S. citizen with a certain income level purchases an electric vehicle, various factors such as price, final assembly location, and the origin of battery materials are comprehensively considered. For SUVs sold this year, the price must be below $80,000.

Kia large SUV EV9. The second-row seats can be chosen as swivel seats that rotate backward.

Considering the domestic sales price of the EV9, it is expected to meet the price and local production criteria, but it is highly likely to fail the battery requirements. The EV9 uses batteries supplied by SK, but the Genesis GV70 electric vehicle, which began local production in February this year, has not qualified for the tax credit because it did not meet the battery material origin criteria.

SK operates a battery cell manufacturing plant in the U.S., but the batteries supplied to Hyundai Motor Group are reportedly produced at a plant in China. The company stated, "Since other government programs are somewhat fluid, we will provide information once the eligibility for tax credits is specifically determined in line with the production schedule next year."

The Kia EV9 was exhibited at the New York International Auto Show held in April this year.

Despite not receiving tax credit benefits, Hyundai Motor Group's electric vehicle sales in the U.S. show a solid trend. According to local data compiled by Motor Intelligence, Hyundai and Kia sold 38,457 electric vehicles in the U.S. during the first half of this year. This ranks second among automakers after Tesla, surpassing General Motors (GM) and Ford, which have larger local production volumes.

Initially, the industry expected Hyundai Motor Group's sales to slow down due to reduced price competitiveness from the lack of tax credits. However, Hyundai Motor Group increased sales by strengthening promotions targeting corporate demand such as rental car companies. Corporate sales volumes qualify for tax credits even if they do not meet IRA criteria such as final assembly location. Hyundai Motor Group's Meta Plant America (HMGMA) under construction in Georgia aims to be completed around 2025 and start mass production the same year. Along with building a new dedicated electric vehicle plant, Hyundai Motor Group is simultaneously pursuing plans to convert some facilities of existing internal combustion engine plants to be suitable for electric vehicle production. Utilizing existing facilities can significantly accelerate the actual vehicle mass production timeline.

This content was produced with the assistance of AI translation services.