Kia’s US-made EV9 may not qualify for the full $7,500 EV tax credit at first
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.
Hyundai also upgraded its Alabama facility last year and began building the first US-made electric Genesis GV70 models.
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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A massive Tesla Megapack project with 1.3 GWh of energy storage capacity is coming online in Arizona – making it one of the largest battery systems.
Salt River Project (SRP) and Plus Power LLC are behind the massive project.
Yesterday, they announced that it is coming online and should provide enough power for 76,000 homes:
Salt River Project (SRP) and Plus Power LLC today celebrated two new grid-charged battery storage systems, Sierra Estrella Energy Storage and Superstition Energy Storage. Together, these facilities will add 340 megawatts (MW) / 1,360 megawatt-hours (MWh) of additional battery storage capacity to SRP’s system – enough to power 76,000 residential homes for a four-hour period. The batteries will absorb excess energy when customer demand is lower and store it for use during times of peak demand.
By being turned on, it automatically became the largest standalone battery system in Arizona and one of the biggest in the US.
Plus Power has been using Tesla Megapacks in many of its energy storage projects, like the one that replaced Hawaii’s last coal power plant.
The Megapack has quickly become the go-to solution for large-scale energy storage projects.
Last quarter, Tesla deployed a record amount of energy storage, 4 GWh, and most of that is believed to be Megapacks.
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EV maker Rivian (RIVN) reaffirmed its plans to build 57,000 vehicles this year during its 2024 Investor Day. More importantly, Rivian still expects to achieve a positive gross profit by the end of the year.
Rivian still on track for positive gross profit in Q4 2024
Rivian gave us a sneak peek into what we can expect as the EV maker transitions to its next growth stage during its first Investor Day on Thursday.
After launching not one but three products (R1T, R1S, and Commercial Van), Rivian lost over $139,000 on every vehicle built in the third quarter of 2022.
Since then, Rivian has made drastic progress in cutting costs. In the first three months of the year, Rivian lost $38,784 per EV built, an improvement of over $100,000. However, that number is still up from the $32.5K and $30.5K losses in Q2 and Q3, 2023.
| Q3 ’22 | Q4 ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | Q4 ’23 | Q1 ’24 | |
| Rivian loss per vehicle | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 | $43,372 | $38,784 |
Rivian shut down its Normal, IL, manufacturing plant in April for a host of upgrades. According to CEO RJ Scaringe, the changes have resulted in “significant” cost reductions.
As a result, Rivian expects to achieve its first positive gross profit in the fourth quarter of 2024. On Thursday, Rivian reaffirmed that it’s on track to hit the milestone by the end of the year.
Rivian believes that, between significant material and labor cost reductions, it will be enough as it strives to earn a profit.
2024 production goal in sight
Rivian also confirmed it’s on track to build 57,000 vehicles this year. Despite production slipping in Q1 (13,980 vs 17,541 in Q4 2023), Rivian expected a slowdown with the planned plant shutdown.
The EV maker expects lower production in Q2 between 9,100 and 9,300 units. Second-quarter deliveries are forecasted to be between 13,000 and 13,300, slightly lower than the 13,588 handed over in Q1.
Rivian expects to ramp production in the second half of the year. Following the R2 launch in early 2026, it expects production capacity to reach 215,000 units.
The smaller, more affordable R2 is expected to represent 155,000 of the total 215,000 production capacity.
Once Rivian’s Georgia plant opens, output is expected to surge with 200,000 production capacity on line 1 and another 200,000 on line 2.
Rivian’s new partnership with Volkswagen earned it new confidence as its stock surged over 20%. Several analysts praised the move, including Dan Ives from Wedbush. Ives said the deal can “change the game for Rivian” on its path to profitability.
Source: Rivian
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