Swedish automaker Volvo is considering an expansion of its EV production in the US, with a possibility of broadening its factory in Charleston, South Carolina, or breaking ground on a second site in the country, according to a new report.
The plan, in large part at least, is to help the company capitalize on green incentives from President Joe Biden’s Inflation Reduction Act (IRA), according to a report today in the Financial Times.
The IRA provides a tax credit for EVs, assuming the vehicle meets the criteria, with buyers receiving up to $7,500 depending on the car’s make and model. Back in April, the US government tightened up restrictions on battery sourcing from China and other “foreign entities of concern,” thus bumping all BMW, Nissan, Rivian, Hyundai, Volkswagen, and Volvo models from the eligibility list.
According to the report, Volvo is…