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Thursday, June 13, 2024

U.S. announced 16 EVS eligible for $7500 tax credit, and Hyundai and KIA excluded

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U.S. President Joe Biden talks with Hyundai Motor Group Chairman Chung Eui-sun as he walks back from a meeting at the Grand Hyatt Hotel in Yongsan-gu, Seoul, during his visit last May. [Photo by Hyundai Motor Group]
The U.S. government on Sunday announced 16 electric vehicles that will be eligible for subsidies of up to $7500. Hyundai and Kia’s electric vehicles are excluded from the list because they are mostly produced in Korea and exported to the United States.

The move is in accordance with the detailed guidelines of the Inflation Reduction Act (IRA). The IRA legislation requires the U.S. to provide subsidies of up to $7,500 in the form of tax credits only for EVs that are ultimately assembled in North America.

In particular, the detailed guidance stipulates that even if an electric vehicle is ultimately assembled in North America, this year’s subsidy will be provided by meeting following conditions: ▲ 50% of battery components manufactured and assembled in North America ▲ 40% of key minerals mined and processed in the United States or FTA countries.

The subsidized electric vehicles announced today include models like Tesla Model 3 and Model Y, as well as the Chevrolet Volt, Equinox, Ford E-Transit, and Mustang. Including Hyundai and KIA EVs, German and Japanese brands are not included at all.

The U.S. government also took additional steps today to increase EV sales. “We are announcing a private and public sector electric vehicle initiative to help meet President Joe Biden’s goal to make 50 percent of EV vehicles on the road by 2030,” the White House said.

Ride-sharing services, including Uber, have joined the effort.

Through its own Green Future program to convert its drivers’ vehicles to EVs, Uber aims to reach 400 million miles of EV driving on its platform by the end of this year.

The company also plans to partner with Walmart to install charging stations at Walmart and Sam’s Clubs nationwide by 2030, as well as invest in charging stations with local businesses.

By Haejune Lee [lee.hayjune@joongang.co.kr]