Three Hyundai electric vehicle models have been excluded from receiving up to $7,500 in Inflation Reduction Act (IRA) tax credits in the United States. Despite meeting the final assembly requirements by completing their Georgia factory last October, these vehicles were reportedly excluded due to battery component and critical mineral sourcing issues.
According to the U.S. Department of Energy (DOE) on Jan. 20, three models—the Ioniq 5, Ioniq 9, and Genesis Electrified GV70—have been removed from the subsidy list, among the five Hyundai Group electric models originally eligible. Two Kia models, the EV6 and EV9, remain eligible for the tax credit.
The U.S. government grants tax credits only to EVs produced domestically that meet specific component and mineral requirements. Battery components must not originate from Foreign Entities of Concern (FEOC), such as China or Russia. While Hyundai’s models initially qualified for these credits earlier this month by meeting the U.S. assembly requirement, they were disqualified under parts and mineral sourcing requirements.
Analysts note that the revised subsidy list reflects a growing preference for U.S. manufacturers, with the U.S. DOE excluding Hyundai models and adding Jeep’s Wagoneer S instead.
