Under the American Inflation Reduction Act (IRA), which Joe Biden signed in August 2022, electric cars can get maximum subsidies (tax breaks) made in North America and use minerals from North America to assemble their batteries. Initially, this law caused dissatisfaction with many auto manufacturers, but since its signing, manufacturers have already announced many investments in the USA.
Kia was among those who could lose a lot of law: Hyundai and Kia together sold the second-most electric cars in the country in 2022, only Tesla could outpace the South Korean brands. In order to maintain favorable prices and popularity, the company had to act.
Production could start as early as next year
Kia previously announced that it will build new production lines at its West Point plant to produce the EV9, making the EV9 the first electric car that Korean manufacturers will produce in the United States. The investment will create about 200 jobs in the state of Georgia, and now the plant expansion has also been revealed as part of a $200 million investment. So the new workplace costs 1 million dollars, which is about 335 million HUF.
At West Point, the EV9 will be built alongside four other models. Earlier this year, Kia unveiled its new flagship, the square and full-size electric SUV, the EV9.
Georgia benefits greatly from the new law
Interestingly, Georgia in the US is one of the states that particularly benefits from the IRA. Rivian is building a $5 billion plant in the state, while Hyundai Motor Group and SK On announced in December plans to build a new battery manufacturing plant in Georgia to supply the Korean automaker.
The last battery factory is scheduled to start operating in 2025, and according to estimates by those involved, it will create more than 3,500 new jobs with investments of approximately $4-5 billion. This is not the first plant of its kind in the state. In January 2022, SK Innovation delivered a battery plant in Commerce, Georgia, as part of a $2.6 billion investment. There are batteries for the electric version of the Ford F-150.
The state’s governor, Brian Kemp, said more than $22.7 billion has been invested by automakers in Georgia since 2020, creating more than 28,400 jobs in the electric vehicle supply chain, Automotive News reports.
