Hyundai’s US-Made Ioniq 5 Set to Qualify for Full EV Tax Credit

First Car to Roll Out of Georgia Factory This Fall

Hyundai’s Ioniq 5 will be the first electric vehicle produced at the company’s new factory in Georgia, starting in October. CEO Jose Muñoz expects the US-made version to be eligible for the full $7,500 federal EV tax credit, which the South Korea-made model currently doesn’t qualify for, except through a leasing loophole.

Battery Production to Follow Later

While the Georgia plant will begin assembling the Ioniq 5 this fall, it won’t start producing batteries on-site for about a year, reports The Verge. In the meantime, Hyundai will source batteries from its partner SK On’s factory in Hungary.

Uncertainty Around Charging Standard

It remains unclear whether the first US-made Ioniq 5 models will feature the North American Charging Standard (NACS) ports, which have become the preferred standard for major US EV automakers. Hyundai previously announced that its cars would gain Tesla Supercharger access and that new or refreshed EVs would come with NACS ports starting in Q4 2024. However, with production beginning in October, there’s a possibility that some US-made Ioniq 5s may still come with CCS ports initially.

“Hyundai Electric Vehicles to Add North American Charging Standard” – Hyundai, October 2023

EVXL’s Take

Hyundai’s move to produce the Ioniq 5 in the US is a significant step towards making EVs more accessible and affordable for American consumers. By qualifying for the full federal tax credit, the US-made Ioniq 5 will become a more attractive option for buyers looking to switch to electric. As more automakers invest in domestic production and adopt the NACS standard, we can expect to see a more streamlined and convenient charging experience for EV owners across the country. This development is a positive sign for the future of electric mobility in the US.