The Hyundai Ioniq 5 is a popular electric car that has won awards. You might be thinking about buying one now. But it might be a good idea to wait for a year. That’s because Hyundai is planning to make it cheaper with a federal tax credit.
Hyundai announced that the production of the Kia EV9 has started in the United States. Now, Hyundai is doing the same. They confirmed that the Ioniq 5 will start being made in America this year. In an interview with Automotive News, Hyundai Motor Group’s global COO, Jose Muñoz, said that it’s obvious that the Ioniq 5 will be the first car to be made at their new factory in Georgia.
The new factory, called the Hyundai Metaplant America, is in Bryan County, Georgia. It’s the third and biggest Hyundai plant in the US, covering 2,900 acres. This factory will have a special production line just for electric cars. It will also have a plant to make lithium-ion batteries and other support operations. Hyundai has spent $7.6 billion on this plant. They expect to hire 8,500 workers and make up to 300,000 electric cars every year.
Even though there are reports that there is less demand for electric cars, the Metaplant will start operating in October this year. But the first Ioniq 5 electric cars made in America will use batteries from Europe. Local battery production won’t start until a year later.
The Ioniq 5 is Hyundai’s best-selling electric car in the US. In 2023, they sold almost 34,000 units. The Ioniq 6 and Kona EV didn’t sell as much. But right now, the Ioniq 5 is imported from Korea. That means it doesn’t get the benefit of a $7,500 federal tax credit. When local production starts, it will be closer to getting the full tax credit. But that will only happen when battery production is also local.
Right now, the Ioniq 5 starts at $41,800. But it wouldn’t be surprising if the price goes up for the 2025 model year. That’s when the new version, introduced in March, might arrive.
