South Korean automaker Kia has announced plans to commence production of its electric SUV in the U.S. by May, with expectations of qualifying for tax credits on EV purchases by early next year.

Kia’s EV9, currently manufactured in South Korea, will be relocated to its U.S. plant in West Point, Georgia, by the end of May, making it eligible for partial EV tax credits. Buyers may receive a tax credit of up to $7,500 for qualifying EVs or plug-in hybrids, provided that the vehicles are fully assembled in North America and meet specified price criteria.

To address concerns about reliance on batteries from China, Kia is investing in an EV battery plant in Savannah, Georgia, which is set to begin production at the end of this year or early next year. Until the batteries are also produced in the U.S., an American-assembled EV9 would qualify for a smaller tax break.

Priced at $54,900, the three-row SUV has garnered positive sales figures since its launch in the fourth quarter, with Kia America selling 3,839 units by December.

Kia’s decision to move production to Georgia is attributed to the availability of tax credits and the U.S.’s status as a primary EV market. The company also welcomes competition from Chinese manufacturers, viewing it as an opportunity to encourage more consumers to consider electric vehicles.

The company’s EV9 has been named the winner of the World Car Of The Year (WCOTY) award and has also been honored with the ‘2024 World Electric Vehicle’ title. The EV9 emerged victorious in a competition against the BYD Seal and Volvo EX30, with the criteria for the award including the car’s availability across at least two continents and evaluations of its design, price, and 7-seat interior by a jury of 100 automotive journalists from 29 countries. (Body End)