Hyundai Motor Group’s plans to break ground on a new electric vehicle factory near the Georgia coast have been complicated by a sprawling climate law signed last month by President Joe Biden, which was intended, in part, to spur more domestic production of EVs.
EVs built by Hyundai Motor brands Hyundai, Kia and Genesis currently qualify for tax credits of as much as $7,500, and Biden in May hailed executives of the South Korean conglomerate for choosing a site in Bryan County for a future $5.5 billion EV factory.
But once Biden signed the legislation into law, EVs like the Hyundai Ioniq 5 and Kia EV6 that are assembled overseas today no longer qualify for a $7,500 price reduction like those from U.S. manufacturers, automotive experts say.
