Hyundai relies heavily on sales of American electric cars. The car manufacturer has make a deal with Georgia to build its first special electric vehicle factory in the United States. The 2,923-acre plant near Savannah will produce cars and batteries when production is expected to begin in the first half of 2025. Construction begins in early 2023. The company expects to produce 300,000 EVs a year at the facility, covering a “wide range of models.

Many factors led to the choice of location. Hyundai cited “favorable business conditions”, which include quick market access, a wide range of talent and an existing network that includes Kia’s main manufacturing center, as well as suppliers. Unnamed incentives play a role, According to to Savannah Morning News. However, it is also an excellent place for transportation. The factory is less than 51 miles from Savannah Harbor, the largest container station in the United States and has two railroad facilities. Add the proximity of two major highways (I-95 and I-16) and it will be easy for Hyundai to receive supplies and deliver ready-made electric cars.

Not surprisingly, Georgia and Hyundai are promoting economic benefits. They estimate the investment at $ 5.54 billion, with Gov. Brian Kemp saying it will be “the biggest project” in the state’s history. In addition, Hyundai claims that the plant will create 8,100 jobs, although it is not clear how many of them are permanent full-time positions.

The annual production level will not be as strong as Hyundai’s conventional production. The company’s plant in Montgomery, Alabama, can produce up to 399,500 vehicles a year. However, this is a big commitment to electric cars and suggests that Hyundai is competing to compete with Tesla, Rivian, Volkswagen and other brands that are expanding the production of electric cars in the country.

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