The U.S. Department of Energy’s latest federal tax credit list no longer includes Hyundai’s Ioniq 5, Ioniq 9, and Genesis GV70 electric models. Earlier this month, all five models from Hyundai Motor had been eligible for the $7,500 tax credit.
Sister company Kia’s EV6 and EV9 models remain on the list of 23 electric and plug-in hybrid vehicles that qualify for the federal incentives, though their status may also face challenges under Trump’s anticipated policy changes.
Industry insiders attribute Hyundai’s exclusion to its battery components not meeting the Inflation Reduction Act (IRA) requirements, which mandate North American battery production and restrict materials sourced from nations deemed foreign entities of concern.
Trump’s return to the White House has further complicated the policy landscape. The president has pledged to dismantle electric vehicle subsidies and reverse Biden-era clean energy measures, casting doubt on the future of billions of dollars in investments by South Korean automakers in the United States.
Hyundai has stated it expects to comply with the IRA’s battery sourcing rules as early as this year, citing its forthcoming $5.54 billion Georgia Metaplant (HMGMA) as a key asset. The facility is projected to produce 300,000 electric vehicles annually. In an effort to build goodwill, Hyundai donated $1 million to Trump’s inauguration.
Company officials say they are also preparing contingency plans should Trump eliminate federal EV incentives, a move that would dramatically reshape the U.S. electric vehicle market.
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