US Announces 18 Electric Vehicle Models Eligible for IRA Subsidies
Including 5 Models Such as Hyundai Ioniq 5
American electric vehicle manufacturer Tesla's Cybertruck has been listed for the first time this year on the U.S. government's subsidy eligibility list.
The U.S. Department of Energy and the Environmental Protection Agency (EPA) announced on the 2nd (local time) 18 electric vehicle models eligible for tax credit benefits under the Inflation Reduction Act (IRA). Among Tesla's vehicles, the Cybertruck was included on the subsidy beneficiary list for the first time this year, along with the Model 3, Model X, and Model Y. Earlier, Hyundai Motor Group's vehicles such as Hyundai's Ioniq 5 and Ioniq 9, Kia's EV6 and EV9, and Genesis GV70 electrified models also joined the IRA benefit list for the first time this year.
The IRA provides subsidies only for electric vehicles that meet origin requirements for batteries and key minerals and are manufactured in the United States. Consumers purchasing these vehicles can receive a tax credit subsidy of up to $7,500 (approximately 11.05 million KRW), depending on income and vehicle price limits.
The number of subsidy-eligible models this year decreased by four from 22 last year. This is due to strengthened domestic sourcing requirements for battery components used in electric vehicles and the raw materials needed to manufacture them. Electric vehicles from Volkswagen's ID.4 crossover, Ford, Nissan, Rivian, Stellantis, and some hybrid models were excluded from this year's subsidy list.
Some view the reduction in subsidy-eligible models as a result of changes in market and political environments. Bloomberg News analyzed, "The decrease in the number of qualified electric vehicles is due to weakened overall demand for battery electric models and the incoming President Donald Trump, who threatened to end the federal subsidy program, preparing to take office at the end of this month."
The Cybertruck is an electric pickup truck that Tesla launched in the market in December 2023 and is currently sold only in North America. On the 1st, an incident occurred in front of the Trump Hotel in Las Vegas, USA, where a Tesla Cybertruck exploded, resulting in one death and seven injuries. According to AP News citing sources, the individual presumed to have died in the explosion while riding in the Cybertruck was identified as active-duty soldier Matthew Ribbelsberger, a member of the U.S. Army Special Forces known as the 'Green Beret.'
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