Looks like Hyundai is losing the federal tax credit in US once the climate bill goes into effect.

Yeap, the bill is absolute garbage.

 

The bill keeps US Taxpayer support of US makers intact.

Hyundai could certainly qualify, by sourcing materials from qualifying regions and building more products within the USMCA.

The intent was clearly to avoid subsidy of Chinese firms building EVs.

 

The intent is to break the reliance on Chinese lithium for EV batteries. China produces the vast majority of the lithium that goes into EV batteries today, and they have made noise about "prioritizing" domestic firms with lower prices and easier access to lithium supplies. This bill is intended to spur lithium production in America.

 

I think it’s more accurate to say China produces the majority of lithium EV batteries.

lithium production on the other hand is dominated by Australia by a lot, then Chile

 

Big MEH from me here.

EVs are not demand, but supply-restricted. EVs have lead times of over a year, except for Tesla, which doesn't get the credit anyways. Society doesn't need to stimulate demand with subsidies,it needs more supply. And given the extreme disregard of Environment and Human rights issues in China, it is just a great thing that climate bill forces creating supply chain outside China.

 

Provisions in the IRA text lift production caps. This makes Tesla and GM eligible for the program.

The purpose of the subsidy appears to stimulate building less expensive EVs in North America, sourcing parts outside of Chinese influence.

 

Being in the US, the bill is more political posturing and vote securing than substantive ecological protection.
If we wanted to actually effect global pollution, we here in the US would make importers liable for cradle to grave pollution on all products.
Moving production from highly industrialized areas with strict environmental laws to places where you can dump whatever you like into the ground water and rivers so long as you pay the right bribes is the reason why after 50+ years of clean air/water laws we still see massive pollution, now just in places where we don't care about the people only cheap prices.

The large demand for EVs, at least in my area, is driven by having access to the subsidies. If they go away a large percentage of the market that would love to own an EV is simply priced out. The ICE version in Limited trim is the same price as the SEL with convenience package AFTER all rebates (we have a $2500 state rebate). If you go with just the base models you save $13k before rebates which will pay for close to 100k miles of gas at today's prices.
Yes, the upper middle class and above will endure the sting of no rebates but those who make to closely watch their budgets will just continue buying ICE.

 

I don't know where you live but given it's somewhere in the USA I bet my hat that the best selling EVs in your state are Teslas:

https://insideevs.com/news/585186/us-electric-car-sales-2022q1/

Teslas are neither eligible for tax rebate nor bought by anyone else but upper middle class. The tax rebate really don't seem to have much of impact on the EV market at the moment

 

I live in SE Massachusetts - Plenty of Teslas around along with plenty of blue collar people but very few blue collar workers driving Teslas

Like I said the loss of rebates won't stop the upper middle class and above from buying but it will stop middle and working class from being able to access the market.
The Kona was $28k after rebates - that's a stretch even with the rebates for the typical household in one of the SE Mass cities with a median income of only ~$46-49k
https://www.census.gov/quickfacts/fallrivercitymassachusetts
https://www.census.gov/quickfacts/newbedfordcitymassachusetts
https://www.census.gov/quickfacts/newbedfordcitymassachusetts?

 

We were planning to buy EV6, but since the rebate is gone, we are planning to place an order for Kona SEL with convenience package today.
Our state also has the $2500 rebate.. so it will help a little bit on the purchase. Without the federal tax credit, the EVs are expensive commuter car for most people including us.

The dealer said it is a 4-6 month lead time, so we still have time to decide if we really want to purchase or decline at that time.

 

I guess I am glad I bought my Kona EV in the nick of time.

 

Hyundai could speed up the EV plant they are planning. I wonder if they could share it with Kia like Toyota and GM did a generation ago?

 

Hyundai (effectively) owns KIA.