KIA begins EV production in the US in 2024
According to South Korean media, KIA will start manufacturing electric vehicles (EVs) in the US in 2024. The development, reported by Maeil Business Newspaper and SBS, attributed the story to an unidentified source.
KIA was excluded from The Inflation Reduction Act, which came into effect last month and excluded foreign-made cars from tax credits. To benefit from the law, KIA is planning to start EV production in the US. KIA's affiliate Hyundai announced in May that it is planning to build the first EV plant in the US, with several global automakers following suit and announcing new energy and EV investments:
- Volkswagen signed a memorandum of understanding with Canada to ramp up its EV plans in the US.
- Honda and GM announced a partnership to manufacture affordable EVs,
- Toyota announced plans to open a gigafactory in the US,
- Panasonic and Toyota partnered to produce EV batteries in the US,
- Stellentis and Qualcomm signed a deal to develop new vehicle platforms.
The Inflation Reduction Act will bring major changes to the EV tax credit in the US, which aims to reduce CO2 emissions while boosting the country's new energy and EV industries. The act requires EVs to have the final stage of assembly in North America to qualify for credits. While challenging, the act also appears to be quite effective in revising foreign automakers' North American investments.
Image: KIA EV6, courtesy of KIA.