Earlier this year, Kia announced that it was talking to Georgian officials about building a electric car manufacturing plant near Savannah. As originally planned, it would start producing cars in 2025, starting with the Kia EV9 and Hyundai Ioniq 7, both of which are 7-seater large-capacity electric SUVs that are expected to attract a lot of interest from the market. share of American car buyers.
Then the Inflation Reduction Act came along and Kia suddenly found itself deprived of federal tax credits for its cars because they weren’t made in the United States. Now Reuters reports that news sources in South Korea say production at the new Georgia plant will begin in 2024 instead of 2025. Kia and its parent company Hyundai Motors, along with South Korean officials, are protesting the new law and implore the Biden administration to provide IRA relief until companies can start producing electric vehicles in America.
There are many jobs involved. Kia says the new $5 billion plant in Georgia will employ 8,500 workers when it reaches full capacity. It appears Georgian officials are also on the phone with Washington asking the government to give Kia some time.
Is the announcement that the plant will start production earlier than planned an attempt to curry favor with the Biden administration? What do you think?
Image courtesy of Kia
Inside electric vehicles says that while Kia’s main goal is to make sure consumers can take advantage of the federal tax credit when they buy its electric vehicles, there are other obvious benefits. Kia has established itself as a manufacturer that produces compelling electric vehicles and its vehicles are very successful. The biggest problem in the United States to date has been the lack of availability of Kia’s electric and plug-in hybrid models. Moving EV production to the United States could help Kia supply more EVs to meet growing demand.
“This is really huge news,” Inside electric vehicles says, “since that could mean an eventual onslaught of more affordable electric vehicles in the United States, coupled with the tax credit that will make them even more affordable. It’s measures like this that will significantly boost the adoption of electric vehicles in the United States, so it looks like it will be a win for lawmakers and Americans alike.
As we said in August, policies matter, and while the Inflation Reduction Act is far from perfect, it achieves one of its main purposes, which is to bring back some of the manufacturing jobs that have fled to other countries over the past 30 recent years of globalization. This is good news for American workers.
Do you appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a Member, supporter, technician or ambassador of CleanTechnica — or a patron on Patreon.
Don’t want to miss a cleantech story? Register for daily news updates from CleanTechnica on email. Or follow us on google news!
Have a tip for CleanTechnica, want to advertise or suggest a guest for our CleanTech Talk podcast? Contact us here.