South Korean Hyundai Motor Group said Friday it plans to invest about $ 5.54 billion (approximately Rs 43,110 crore) to build its first specialized all-electric vehicle (EV) and battery production facility in the United States.
Hyundai will begin its new plant in Georgia in early 2023 and is expected to begin commercial production in the first half of 2025 with an annual capacity of 300,000 EV units, the company said in a statement.
The South Korean car group said it intends to create about 8,100 jobs.
Hyundai Motor Group, which includes Hyundai and Kia, added that the battery plant will be set up through a strategic partnership, details of which will be announced at a later stage.
Reuters reported last week that Hyundai was in talks to build a plant for the production of electric vehicles in the United States and had held talks with representatives of Georgia.
The plant is a key part of Hyundai’s planned investment of $ 7.4 billion (approximately Rs 57,585 crore) in the United States by 2025 to promote future mobility. The state of Georgia expects to raise another $ 1 billion (approximately Rs 7,780 crore) in additional investments from unrelated Hyundai Motor Group suppliers in addition to the investment.
Hyundai’s battery supplier, SK Innovation SK On, has built two neighboring plants in Georgia. The first, delivered mainly by Volkswagen, started production in the first quarter. The second, which will supply Ford Motor, is expected to begin production early next year.
SK On will supply the battery for the Ioniq 7, a source told Reuters earlier. SK On said it could not comment on supply deals involving specific customers.
Hyundai’s US investment coincides with US President Biden’s arrival in South Korea on Friday.
The South Korean automotive group, which is among the five largest automakers in the world in terms of car sales, has manufacturing facilities in Alabama and Georgia. In April, Hyundai Motor said it planned to invest $ 300 million (approximately Rs 2,330 crore) to add electric vehicles to its Montgomery installation.
Separately, Hyundai Motor Group said on Wednesday that it plans to invest KRW 21 trillion (approximately RUR 1,238,300) by 2030 to expand its EV business in South Korea.
© Thomson Reuters 2022