Hyundai and battery provider SK On are partnering to satisfy the brand new battery sourcing necessities of the Inflation Discount Act (IRA).
The IRA continues the $7,500 federal EV tax credit score, however to qualify for the complete quantity, it stipulates that EVs and their battery packs should be assembled in North America, and sure minerals utilized in batteries should be sourced both domestically or from international locations with a free commerce settlement with the U.S.
2023 Hyundai Ioniq 6
Hyundai and SK On have signed a memorandum of understanding for battery provide to Hyundai’s U.S. factories after 2025, with additional particulars to be disclosed at a later date, SK On stated in a press launch. That may assist handle the home meeting portion of the necessities. SK On is new title for the battery enterprise spun off of SK Innovation in October of final 12 months.
For the minerals sourcing part, SK stated it just lately signed lithium buy contracts with suppliers in international locations which have free commerce agreements with the U.S., together with Australia and Chile.
This confirms earlier experiences that the EV tax credit score guidelines and supplies sourcing necessities may accelerate Hyundai’s timeline for U.S.-built EVs.
Kia EV manufacturing in Georgia
Hyundai introduced its U.S. EV plant—with a corresponding battery enterprise—earlier this 12 months. The $5.5 billion plant can be positioned close to Savannah, Georgia, and can goal a producing capability of 300,000 automobiles per 12 months. In October, Hyundai confirmed that Kia EVs may also be made on the Georgia “Metaplant.” EVs for the automaker’s Genesis luxurious model can be made there as effectively.
SK already provides batteries for EVs primarily based on Hyundai’s E-GMP platform, together with the Hyundai Ioniq 5 and Ioniq 6, and the Kia EV6.
The IRA’s battery-sourcing necessities have been met with criticism from the auto trade and a few members of Congress. A bill seeks the delay of EV tax credit American sourcing rules, but it surely seems to be stalled.