Kia is plowing ahead with plans to produce its first three-row electric SUV in the US, which is slated to begin this spring. However, it’s unclear whether Kia’s new US-made EV9 will fully qualify for the $7,500 EV tax credit at first.
After opening orders for its first three-row electric SUV in October, Kia’s EV9 has garnered significant interest.
Kia calls the EV9’s sub-$55K starting price a “wake-up call to the industry.” The automaker is already importing models to the US as sales have grown from 1,118 in December to 1,408 last month. Kia expects to sell about 2,000 EV9 models a month eventually.
As Kia’s first large electric SUV (with a range-topping AWD GT-Line trim starting at $73,900), the EV9 is expected to play a big role in the brand’s shift to electric.
According to online auto research firm CarsDirect, the EV9 is already being marked up at dealers despite Kia’s plea to keep prices low.
The 2024 Kia EV9 GT-Line is being marked up by up to $7,000. Some dealers have the range-topping EV9 listed at $83,315 before taxes and fees.
With 42.8″ rear legroom, the EV9 tops the Cadillac Escalade, 3-row Range Rover P400, and Mercedes EQS. It also has more shoulder and legroom than Tesla’s Model X. It’s no wonder the electric SUV is in high demand.
Does the Kia EV9 qualify for the full $7,500 EV tax credit?
Although the EV9 is already sold in the states, Kia is moving EV9 production to the US to gain access to the federal tax credit.
Kia’s Georgia facility is undergoing preparations to start building the electric SUV this spring, with the first US-made models rolling out this summer. However, it’s not certain that the Kia EV9 will initially qualify for the full $7,500 tax credit.
After new requirements were put into place this year, only 13 all-electric cars qualify. That’s down from 25 last year.
The new requirements limit 2% of the vehicle’s battery parts to be from a “foreign entity of concern,” like China.
CEO of Kia Georgia, Stuart Countess, told Automotive News, “We’re finishing some fine-tuning in the trial phase.” He added the facility will undergo a transition phase before it can begin using locally sourced batteries for the EV9.
“We will receive a battery assembly to marry into the car that comes to us through Hyundai Mobis,” Countess explained.
The battery packs will come from Hyundai or another external supplier. Hyundai is pushing ahead with plans to build two battery factories in the US. But neither is expected to begin production until next year.
Pushing ahead
Hyundai is building an EV battery plant as part of its $7.6 billion Metaplant near Savannah, Georgia. The other is in collaboration with SK On in Bartow County.
The battery and EV plant will support the production of 300,000 Hyundai, Kia, and Genesis EVs. Hyundai has already drastically pulled ahead the start of production to gain access to the IRA tax credit. It could come online as soon as October.
Kia’s EV9 will be the first all-electric model built at its West Point facility. The plant is best known for building Kia’s high-volume crossovers like the Telluride, Sorento, and Sportage.
Once the EV9 comes online, Kia will adjust the output mix according to demand. The facility currently can build up to 350,000 vehicles a year. The Sportage tops the mix, with the Telluride closely behind.
Kia has sent team members to Korea to work with prototypes and learn how to install the battery packs. Countess said plant managers are eager to get the EV9 into the building.
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Corporate America is investing in clean energy at record levels, with tech giants taking the top spots for users of solar.
Meta, Google, and Amazon are leading the charge in solar and battery storage adoption, according to the Solar Energy Industries Association’s (SEIA’s) latest “Solar Means Business” report.
Meta continues to hold the title of the top solar user in corporate America, with nearly 5.2 gigawatts (GW) of solar capacity installed. Meanwhile, Google leads the way in energy storage, boasting 936 megawatt-hours (MWh) of installed battery capacity. Through the first quarter of 2024, these companies have added the most solar capacity to their electricity portfolios, with major players like General Motors, Toyota, and US Steel also climbing the ranks.
The report reveals that US businesses have installed nearly 40 GW of solar capacity both onsite and offsite through Q1 2024, and corporate storage use now exceeds 1.8 gigawatt-hours (GWh). Even more growth is coming: Companies have over 3 GWh of battery storage under contract that will come online in the next five years.
“Some of the largest industrial and data operations in the world continue turning to solar and storage as a reliable, low-cost way to power their operations,” said SEIA president and CEO Abigail Ross Hopper.
Technology companies are at the forefront of this shift as data center growth drives skyrocketing electricity demand. Amazon, for example, leads the US with 13.6 GW of solar procurements under contract, while Meta and Google each have nearly 6 GW under contract – pipelines over 10 times larger than the next company in the rankings.
Target remains the US’s leading onsite corporate solar user for the ninth year in a row, with Prologis, Walmart, Amazon, and Blackstone also making the top five. For the first time, the “Solar Means Business” report is also tracking corporate battery energy storage, with Google, Apple, Meta, Target, Walmart, Home Depot, and Kohl’s among the top 10 companies using storage to meet more of their energy needs in real-time.
Looking ahead, both offsite and onsite energy storage are expected to play a bigger role in corporate renewable energy strategies. Medical companies like Kaiser Permanente are already using batteries to power microgrids, making their facilities more resilient to outages.
Carolyn Campbell, Meta’s head of clean and renewable energy, East, highlighted the importance of expanding solar capacity to match the company’s global operations with 100% clean energy: “We’re thrilled to rank number one for corporate solar procurement in SEIA’s report this year, and we continue to find ways to grow the grid to benefit everyone.”
Target’s vice president of property management, Erin Tyler, said of Target’s 20-year-old solar program, “Through our commitment to solar, we’re well on our way to achieving our corporate goal of sourcing 100% of electricity from renewable sources by 2030.”
The “Solar Means Business” report also looks at the policies driving corporate America’s adoption of solar. Many companies are taking advantage of the Inflation Reduction Act’s long-term clean energy incentives. To further accelerate their renewable energy investments, businesses are calling for improvements in interconnection processes, new community solar legislation, and simpler tax credit monetization.
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Volkswagen Group Africa has officially begun production of a modern electric farm tractor at its multifunctional facility in Gashora, Rwanda in a bid to advance modern, low-emission agricultural initiatives in Africa.
Part of a larger Rwandan initiative called the GenFarm Project, the new VW tractor is part of a “holistic ecosystem” of electrified farming machinery set to be used throughout rural Africa – where liquid fossil fuels are often just as difficult to come by as electricity. The goal is to provide machinery that’s both sustainable and reliable.
“We are growing our footprint in Africa and regard Rwanda as a key growth market. This project demonstrates our commitment to sustainable practices and highlights our ability to provide mobility solutions to the rural community in addition to the urban community currently serviced by our Volkswagen Mobility Solutions Rwanda business,” explains Martina Biene, Volkswagen Group Africa Chairperson and Managing Director. “The GenFarm Project fosters technological innovation and aligns with Volkswagen Group’s strategy to generate meaningful value for both society and the environment through sustainable mobility.”
The GenFarm project will eventually provide mobility services for transportation of goods and people. In June 2023, Volkswagen Group Africa signed a Memorandum of Understanding (MoU) with the Government of Rwanda to provide land for the establishment of the GenFarm Project.
The Volkswagen tractors’ electric motor produces 20 kW (about 27 hp), making it about the same size as the Solectrac product (which hasn’t worked out well in the US, it must be said). That motor gets its electrons from a 32 kWh swappable battery. Batteries are swapped/charged at the Empowerment Hub to minimize downtime. DC fast charging isn’t available, but the relatively small, swappable batteries (hopefully) mean that’s not much of a problem.
The GenFarm project hopes the new VW electric tractor will help clean up Rwanda’s agricultural sector, which currently accounts for some 25% of the national Gross Domestic Product.
Electrek’s Take
We’ve talked a lot about the lack of new farmers in America, but the problem is global – especially as western companies, and western ideas about consumerism, continue to spread. Products like this electric tractor from VW will make farming cleaner, quieter, and (hopefully) more attractive to young workers.
A new, all electric Peterbilt 579EV is in-service at Honda’s Lincoln, Alabama assembly plant, where it’s busy transporting newly-built Honda cars from the plant to a nearby railhead for shipment to dealers across the country.
Part of a pilot program between Honda, Alabama Power, and Virginia Transportation Corp., the new electric semi truck will help stakeholders gather data about the practicality and performance of the battery-powered Pete and use it to generate case studies for broader electrification initiatives. Other supporters of the pilot project include the Alabama Clean Fuels Coalition and, of course, Peterbilt.
“We remain committed to delivering for our customers and the environment,” offered Leo Doire, owner and CEO of Virginia Transportation Corp. “Our new Peterbilt 579EV model will be tested to determine how well it performs against the high productivity demands of our operations. The partners we have at the table will help us maximize this opportunity and prepare to scale up if we get the results we are hoping for.”
The truck itself has been spec’ed to be perfect for the kind of short haul and drayage applications Honda has in mind. This particular Peterbilt 579EV is fitted with PACCAR’s 400 kWh battery and a 670 hp electric motor good for an impressive 2,050 lb-ft of peak torque at 0 rpm.
The truck offers 150 miles of operating range and can be charged in about 3 hours on a 120 kW charger installed specifically for that purpose. A charger, it should be noted, that was partially paid for by Alabama Power.
“Alabama Power’s ‘Make Ready’ program provides businesses with valuable rebates to help reduce the upfront costs of installing EV infrastructure,” says Alabama Power Electric Transportation Manager Hasin Gandhakwala. “We are committed to partnering with customers who are exploring state and federal grant opportunities. Alabama Power is dedicated to advancing EV technologies to better serve the needs of our customers.”
With the big Pete’s 82,000 lb. GVWR and 150 miles of range between charging sessions, it seems like these guys will be making a lot of back-and-forth runs between the Honda plant and the CSX terminal to me. Here’s hoping they see the benefits of electrifying the rest of their vehicle transport fleets somewhat sooner than later.