Kia to build $30,000 EV3 in Mexico, unlocking US EV tax credit
A new low-cost EV is primed to hit the US market. Kia plans to build its new EV3 in Mexico as it looks to take advantage of the US electric vehicle tax credit.
Kia introduced the EV3 during its 2023 EV Day as part of a new line-up of affordable electric vehicles.
After opening orders in Korea earlier this month, we learned that the EV3’s starting price is roughly $30,700 (KRW 42.08 million). The EV3 is Kia’s third all-electric vehicle and the first of a new series.
Although it takes much of the design and tech from Kia’s three-row EV9 (in a smaller, more affordable package), the EV3 “carves out its own identity” to stand out in its segment. One of the first things you will see is Kia’s new “Tiger Face” grille, a modern take on its signature Tiger Nose design.
Kia is confident the EV3 will “elevate the perception of EV SUVs” with an advanced electric powertrain, bold design, and innovative tech.
Built on Hyundai’s E-GMP platform (the same one underpinning the IONIQ 5 and Kia EV9) and Kia’s fourth-gen battery tech, the EV3 features up to 373 miles (600 km) WLTP driving range and fast charging capability (10% to 80% in 31 mins).
Kia to build affordable EV3 in Mexico for US EV tax credit
Kia’s new EV3 is built for buyers who may be on the fence about going electric with long-range and fast charging capabilities.
“It will reassure those who may have been hesitant to make the switch to electric mobility and will lead the mass adoption of EVs,” Kia’s president and CEO, Ho Sung Song, boasted.
The inside is loaded with the latest software and connectivity tech. It includes Kia’s next-gen Connected Car Navigation Cockpit (ccNc) with dual 12.3″ screens and Apple CarPlay/ Android Auto support.
Although the EV3 is much smaller than the EV9, it is also more affordable. Kia’s EV9 starts at $54,900 in the US, which is still low for a three-row electric SUV.
With expected starting prices around $30,000 to $35,000, the EV3 will be among the most affordable EVs in the US.
| Place | Most affordable EVs in Q1 2024 | Average selling price with discounts | % off average transaction price |
| 1 | Nissan LEAF | $27,956 | 19% |
| 2 | Nissan Ariya | $35,556 | 31% |
| 3 | Hyundai IONIQ 6 | $36,506 | 22% |
| 4 | Tesla Model 3 | $40,547 | 7% |
| 5 | Toyota bZ4X | $40,646 | 15% |
Data from Cox Automotive, the cheapest EVs in the US in Q1 were the Nissan LEAF, with an average selling price of $27,956, followed by the Nissan Ariya ($35,556), Hyundai IONIQ 6 ($36,506), and Tesla Model 3 ($40,547).
Meanwhile, several new low-cost EVs are hitting the US market this year, including Volvo’s EX30 ($34,950) and Chevy Equinox EV ($34,995).
According to Korean auto media outlet The Korean Car Blog, Kia plans to build the EV3 in Mexico. With the potential $7,500 federal tax credit, EV3 prices could fall to as low as $22,500 to $27,500.
Kia’s Monterey plant in Mexico has a production capacity of up to 400,000 units. The K3 and Pride are currently built there. According to the report, Kia aims to build 110,000 EV3 models annually at the facility.
The Mexico-manufactured EV3 will be sold in North America, while the Korean-made model will be sold domestically and exported to Europe.
Would you buy the EV3 for $30,000? What about $23,000? Let us know in the comments below.
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Tesla has inked its first deal to build a grid-scale battery power plant in China amid a strained trading relationship between Beijing and Washington.
The U.S. company posted on the Chinese social media service Weibo that the project would be the largest of its kind in China when completed.
Utility-scale battery energy storage systems help electricity grids keep supply and demand in balance. They are increasingly needed to bridge the supply-demand mismatch caused by intermittent energy sources such as solar and wind.
Chinese media outlet Yicai first reported that the deal, worth 4 billion yuan ($556 million), had been signed by Tesla, the local government of Shanghai and financing firm China Kangfu International Leasing, according to the Reuters news agency.
Tesla said its battery factory in Shanghai had produced more than 100 Megapacks — the battery designed for utility-scale deployment — in the first quarter of this year. One Megapack can provide up to 1 megawatt of power for four hours.
“The grid-side energy storage power station is a ‘smart regulator’ for urban electricity, which can flexibly adjust grid resources,” Tesla said on Weibo, according to a Google translation.
This would “effectively solve the pressure of urban power supply and ensure the safe, stable and efficient electricity demand of the city,” it added. “After completion, this project is expected to become the largest grid-side energy storage project in China.”
According to the company’s website, each Megapack retails for just under $1 million in the U.S. Pricing for China was unavailable.
The deal is significant for Tesla, as China’s CATL and carmaker BYD compete with similar products. The two Chinese companies have made significant inroads in battery development and manufacturing, with the former holding about 40% of the global market share.
CATL was also expected to supply battery cells and packs that are used in Tesla’s Megapacks, according to a Reuters news source.
Tesla’s deal with a Chinese local authority is also significant as it comes after U.S. President Donald Trump slapped tariffs on imports from China, straining the geopolitical relationship between the world’s two largest economies.
Tesla Chief Executive Elon Musk was also a close ally of President Trump during the initial stages of the trade war, further complicating the business outlook for U.S. automakers in China.
The demand for grid-scale battery installation, however, is significant in China. In May last year, Beijing set a new target to add nearly 5 gigawatts of battery-powered electricity supply by the end of 2025, bringing the total capacity to 40 gigawatts.
Tesla has also been exporting its Megapacks to Europe and Asia from its Shanghai plant to meet global demand.
Capacity for global battery energy storage systems rose 42 gigawatts in 2023, nearly doubling the total increase in capacity observed in the previous year, according to the International Energy Agency.
— CNBC’s Arjun Kharpal contributed reporting.
Environment
BYD is testing solid-state EV batteries in its Seal sedan with nearly 1,200 miles of range
BYD has now begun testing solid-state EV batteries in its Tesla Model 3-rivalling Seal. Initial tests suggest that the total driving range could reach nearly 1,200 miles (1,875 km).
BYD begins testing solid-state EV batteries in the Seal
It has been over a decade since BYD first began researching and developing the promising new EV battery technology.
Last year, the company reached a milestone by testing its first solid-state battery cells with capacities of 20 Ah and 60 Ah. We knew BYD was planning to launch its first vehicles powered by the new batteries in 2027 after Sun Huajun, the CTO of BYD’s battery business, confirmed the timeline earlier this year.
At the 2025 China All-Solid-State Battery Innovation and Development Summit, Sun stated that BYD has officially installed solid-state batteries in its popular Seal EV and is now testing them on roads.
Once testing is finalized, which is expected to occur in 2027, BYD plans to begin installing solid-state batteries in its production vehicles.
Between 2027 and 2029, production will be limited during the first two years. However, in 2030, BYD plans to begin mass production. BYD has previously said that by the end of the decade, it expects “liquid and solid to be the same price.” In other words, solid-state batteries will be about the same cost as current liquid lithium-ion batteries.
The Seal, BYD’s Tesla Model 3-rivalling electric sedan, is expected to be the first EV available with solid-state batteries, starting in 2027. Other models will begin to hit the market in 2028 and the following years.
BYD’s solid-state batteries have an energy density of 400 Wh/kg, or nearly twice that of current lithium-ion batteries.
According to local reports, BYD’s solid-state EV batteries set a record by gaining 1,500 km (932 miles) range in just 12 minutes of charging.
The test charged the battery to just 80%, meaning total EV range could reach upwards of 1,875 km (1,165 miles). Keep in mind, that is CLTC range. On the EPA scale, it would be closer to 1,300 km (808 miles), which is still way more than enough.
BYD’s Seal currently starts at just 175,800 yuan in China, or about $25,000. When it initially hits the market in 2027 with solid-state batteries, the Seal will likely be priced higher.
Electrek’s Take
BYD is already dominating the global EV market. It just surpassed Tesla in Europe and the UK in monthly registrations for the first time, and this could be just the start.
With several new batteries and plenty of other EV technologies, including ultra-fast chargers, smart driving features, and advanced new platforms, BYD is laying the groundwork for more growth over the next few years.
Not only that, BYD is already known for its low-cost cars like the Seagull (Dolping Surf in Europe), priced under $10,000 in China. The new tech is expected to unlock longer driving range, faster charging, and lower costs.
BYD will compete with CATL, Mercedes-Benz, Volkswagen, Stellantis, Nissan, and several others that are also aiming to launch their first EVs with solid-state batteries around 2027 or 2028. Nissan’s director of product planning in Europe, Christop Ambland, confirmed the company’s timeline this week with Auto Express, saying, “We will be ready for SSB (solid-state batteries) in 2028.”
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new e-bikes from Urban Arrow and VanMoof, testing of the Oh Wow Cycles Conductor Plus rickshaw tricycle, the new Olto electric moped, a Honda four-wheeled quad-bike, low cost Zero motorcycles, and more.
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