Tougher sourcing rules for battery minerals that took effect in the new year have reduced the number of electrified nameplates eligible for a federal tax credit worth up to $7,500 for vehicle buyers.

More plug-in hybrid and electric vehicles have been approved for the tax credit in 2025 than in 2024 — 27, up from 22, according to the U.S. Department of Energy — but some are not on sale yet. The list of eligible models is likely to grow throughout the year as more become available.

EVs from Cadillac, Chevrolet, Honda, Acura, Ford and Tesla continue to be eligible for the full $7,500 credit this year, as does the plug-in hybrid version of the Chrysler Pacifica minivan, according to the IRS, which publishes the list of eligible nameplates.

EVs and plug-in hybrids that qualify on purchases

However, some EVs and PHEVs from Volkswagen, Audi, Ford, Lincoln, Jeep and Rivian that qualified in 2024 dropped off the list as of Jan. 1. Several brands told Automotive News that consumers can continue to receive the credit when leasing an EV, because a less stringent set of battery sourcing and assembly rules can be applied.

Hyundai, Genesis and Kia, which did not have any EVs that qualified for the full purchase credit last year, are included on the IRS’s list of eligible vehicles for 2025. The brands anticipate eligibility for the full $7,500 purchase credit on the 2025 Hyundai Ioniq 5 and Ioniq 9, the 2025 Genesis Electrified GV70 and the 2026 Kia EV6 and EV9 crossovers this year as U.S. battery and vehicle assembly sites come online.

“Manufacturers have been rapidly moving production of their EVs to the U.S. and shifting sourcing away from China as a result of the consumer tax credit provisions,” an Energy Department spokesperson said in a statement.

2025 changes to the federal tax credit

How long consumers can take advantage of the purchase credit — which was adopted as part of the Biden administration’s Inflation Reduction Act and can be applied at the point of sale — remains uncertain. The benefit could be short-lived if incoming President Donald Trump eliminates it, as his transition team has indicated is under consideration.

The federal purchase credit is split into two elements. A vehicle can qualify for half-credit by meeting requirements for battery component production or assembly in North America. The other $3,750 is contingent upon where minerals in the battery are sourced. The sticker price also must be no more than $80,000 for pickups, SUVs and vans and $55,000 for other vehicles.

Starting in 2024, 60 percent of an EV’s battery components must be assembled in North America and no components can come from a “foreign entity of concern,” including China, Iran, North Korea and Russia.

What changed for 2025 are the sourcing requirements for critical battery minerals. Now, 60 percent must be extracted or processed in the U.S. or one of its free-trade partners, up from 50 percent, or be recycled in North America. The minimum is set to be 70 percent next year and 80 percent in 2027. Battery materials also can no longer come from a foreign entity of concern.

“There are so many companies joining the supply chain that it should be possible for a lot of these manufacturers to find local supply of whatever critical mineral or component that they need to bring it back into compliance,” said Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions.

Audi confirmed that the plug-in hybrid version of its Q5 crossover lost eligibility for 2025, though leases can still use the $7,500 incentive. Volkswagen said the same of its ID4 electric crossover.

Ford Motor Co. confirmed that the plug-in hybrid variants of its Ford Escape and Lincoln Corsair compact crossovers are no longer eligible for the purchase credit as well but declined to comment further. Buyers could get half-credit on both vehicles last year.

Rivian lost eligibility for varieties of its R1T pickup and R1S crossover, which had received half-credit in 2024. The automaker told Automotive News that the smaller R2 vehicle platform it’s working on is expected to comply. Both the R1T and R1S continue to qualify for the leasing credit, the company said.

Tesla’s Cybertruck became eligible in 2025 after the automaker introduced a version priced below the $80,000 price cap.

Nissan confirmed its compact Leaf dropped off the list in 2025, while Jeep said the 4xe plug-in hybrid variants of its Wrangler and Grand Cherokee now qualify for an incentive only when leased. The Leaf and both Jeep models had qualified for $3,750 on purchases in 2024.

Automakers whose EVs don’t receive the credit are at a “competitive disadvantage” against rivals that qualify, making it more likely those companies will enter supply agreements that meet the requirements, said Nick Nigro, founder of EV research group Atlas Public Policy.

“By qualifying, you’re telling your customers, ‘You’re going to get a discount from the government because they’re encouraging us to do something sustainable with our supply chain, and we’re doing it,’” Nigro said. “That’s a selling point.”

Hyundai, Kia commitments in U.S.

Hyundai Motor Group decided to build EVs in the U.S. prior to the Inflation Reduction Act, an investment that reflects the automaker’s commitment to electrification, Randy Parker, CEO of Hyundai and Genesis Motor North America, told Automotive News. Its early EVs were imported to the U.S. and not initially eligible for the federal purchase credit, though all of the group’s electric vehicles qualify for the federal incentive on leases.

“We’re committed to meeting the consumers on their transition to electrification,” Parker said, “and we’re very, very proud of the fact that we’ve got this significant manufacturing investment in the United States.”

Hyundai is investing $7.6 billion in a massive electric vehicle complex in Georgia that includes a joint-venture battery factory with LG Energy Solution. Assembly of the Hyundai Ioniq 5 has started at the factory, called the Metaplant, while the Ioniq 9 is expected to enter production there this year.

Separately, Kia spent $200 million to retool its assembly plant in West Point, Ga., to build EVs, starting with the flagship EV9. In November, Kia said it would move EV6 production to the U.S. factory as well. Parent Hyundai Motor also is building a joint-venture battery plant with SK On nearby that will supply the West Point plant and Hyundai’s factory in Montgomery, Ala., where it builds the Genesis Electrified GV70.

The 2026 model of the three-row EV9, which likely will get the SK On batteries, will enter production this year, as will the 2026 EV6.

Vince Bond Jr., Laurence Iliff, Michael Martinez, Carly Schaffner and Jack Walsworth contributed to this report.