U.S. Production of Kia EV9 Being Reduced, 2025 Models Eligible for Federal EV Tax Credit
- Kia is cutting back U.S. production of the EV9 electric SUV, but 2025 models that are assembled here will qualify for a $3,750 federal EV tax credit.
- The 2025 Kia EV9 costs $56,225 without the credit.
Kia is reducing the production of the EV9 electric SUV in the U.S., but the good news is that 2025 models assembled in the country will be eligible for a $3,750 federal EV tax credit. This credit is half of the maximum amount and is due to the fact that the battery supplier, SK On, still manufactures batteries for the EV9 in China, which is considered a foreign entity of concern by the U.S. government.
This means that going forward, vehicles with battery materials sourced from any country labeled a foreign entity of concern will not qualify for the full credit amount under rules established as part of the Inflation Reduction Act (IRA).
“The EV9 is ineligible to benefit from the full IRA benefits due to the battery issue, along with other factors, including price,” a Kia official told The Korea Herald. The IRA rules also include an $80,000 price cap for electric SUVs, but many versions of the EV9 come in underneath that. The base Light Standard Range starts at $56,225, with destination.
Despite the production cutback, Kia began producing EV9s at its West Point, Georgia, plant in June. However, most U.S.-market vehicles are still sourced from South Korea. Additionally, EV9s are also being built at Hyundai’s Metaplant in Georgia, but not in significant volume. Only 21 were made at that facility in the third quarter, with just one sold in the U.S.
SK On has been working with Hyundai and Kia to comply with tax-credit sourcing rules, and they are ramping up efforts with the construction of a new battery cell plant in Georgia. This plant is projected to have an annual capacity of 35 gwh, enough for 500,000 EVs. Hyundai is also planning a joint venture battery plant with LG Energy Solution in Georgia.
The Kia EV9, which debuted as a 2024 model and received the Best Car To Buy award from Green Car Reports, has been selling well, with nearly 18,000 sales through October. Kia’s focus seems to be on meeting the demand rather than specifically manufacturing vehicles in the U.S. to meet tax credit rules. This may result in the EV9 not qualifying for the full tax credit amount for some time, especially considering the possibility of the tax credit being eliminated under the incoming Trump administration.