Key Takeaways
- Hyundai is set to make the Ioniq 5 cheaper by producing it at its new Metaplant in Georgia.
- Hyundai Metaplant America is the automaker’s largest plant, with a capacity to produce 300,000 EVs.
- The American-made Ioniq 5 will qualify for the full tax credit once local production of batteries begins.
The Hyundai Ioniq 5 is an award-winning EV, and you are probably in the market for one right now. However, you might want to delay your purchase by a year, as Hyundai is set to make it cheaper, thanks to the federal tax credit.
Following the announcement that the Kia EV9’s US production has started, Hyundai is also following suit by confirming that the Ioniq 5 will begin production on American soil this year. In an interview with Automotive News, Hyundai Motor Group (HMG) global COO Jose Muñoz shared that it’s a “no-brainer” that the Ioniq 5 will be the first to roll off the line of the company’s new factory in Georgia.
“It absolutely is the bestseller. So I think it is a no-brainer that it needs to be that one,” Muñoz said in the Automotive News interview.
The Hyundai Metaplant America in Bryan County, Georgia, is HMG’s third and biggest plant in the US, spanning 2,900 acres. It will have a dedicated production line for EVs, as well as a lithium-ion battery plant and other support operations. The Korean automaker has invested $7.6 billion in this plant, which is expected to employ 8,500 workers and produce up to 300,000 EVs annually.
Amid HMG’s reported reevaluation of EV strategy due to dwindling EV demand, the Metaplant’s operations will still begin in October of this year. However, the first American-made Ioniq 5 EVs will initially roll with Europe-sourced batteries as local lithium-ion production won’t begin until a year later.
American-Made Best-Seller
With nearly 34,000 units moved in 2023, the Ioniq 5 is Hyundai’s best-selling EV in the US, with the Ioniq 6 and Kona EV lagging behind. Despite this, it is currently being imported from Korea, therefore not enjoying the benefits of $7,500 federal tax credit getting slashed off its MSRP. With local production set to commence this year, it will become one-step closer to qualifying for the full federal tax credit, which will only happen when battery production also becomes local.
Of note, the Ioniq 5 currently starts at $41,800, but a price increase for the 2025 model year won’t be surprising, which could see the arrival of the facelifted version introduced in March.
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