All electric vehicle models for which the US government pays subsidies of up to $7,500 (about 9.9 million won) in accordance with detailed guidelines of the Inflation Reduction Act (IRA) have been released.
On the 17th (local time), the U.S. Department of the Treasury and the Department of Energy finally announced a total of 22 target models, including 16 electric vehicles and 6 plug-in hybrid vehicles, that can receive subsidies in the form of tax credits.
As the battery requirements were added following the North American conditions, the target vehicle models were greatly reduced. Previously, there were more than 40 electric vehicle models that met North American-made conditions, but with the addition of battery requirements, the target vehicle models were reduced to 22.
Tesla is expected to further solidify its dominance in the US electric vehicle market as the Model 3 and Model Y are all included in the subsidies.
In the case of Hyundai Motor Company, the GV70 produced at the plant in Alabama, USA, met the conditions for North American production, but it is known that most of the battery parts and core minerals are made in China.
According to the recently announced detailed guidelines, starting this year, even for electric vehicles that are finally assembled in North America △ US$ 3,750 if more than 50% of battery parts manufactured and assembled in North America are used △ If more than 40% of processed core minerals are used, it is stipulated that $3,750 will be paid each.
Both conditions must be met to receive the $7,500 subsidy. Foreign electric vehicle makers were eventually eliminated from subsidies because they failed to meet the above two requirements.
Automobile experts are unanimous saying, “As the IRA strengthened detailed guidelines, all foreign brand electric vehicles, except for American brands, were excluded from subsidy payments.”
As news like this spread, stocks of American electric car makers rallied all at once. Tesla rose 1.10%, Lucid 2.85%, and Rivian 2.62% each. In particular, Nikola, which recently plummeted, soared 10.83%.
On the New York Stock Exchange that day, Nikola recorded $0.9088, up 10.83% from the previous trading day. This is interpreted as an influx of counter-buying due to the recent excessive drop.
Meanwhile, Hyundai Motor Company, which has been focusing on expanding sales of electric vehicles in the United States, is pushing ahead with plans to advance the timing of additional electric vehicle production at existing factories in Alabama and Georgia.
(Seoul-Washington = News 1)
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.