Hyundai Motor Group to invest $5.54 billion to build EV plants in U.S.

179
2
Hyundai Motor Group to invest $5.54 billion to build EV plants in U.S.

WASHINGTON SEOUL Reuters -- South Korea's Hyundai Motor Group said on Friday it plans to invest $5.54 billion to build its first dedicated full electric vehicle and battery manufacturing facilities in the United States.

Hyundai will begin commercial production in early 2023 in Georgia and will be ready to start in the first half of 2025 with an annual capacity of 300,000 EV units, the company said in a statement.

The South Korean auto group said it intends to create about 8,100 jobs.

Hyundai Motor Group, which includes Hyundai Motor and Kia, said the battery manufacturing facility will be established through a strategic partnership, details of which will be disclosed at a later stage.

Last week, Reuters reported that Hyundai was in talks to build an EV manufacturing plant in the United States and had discussions with Georgia officials.

The plant is part of Hyundai's $7.4 billion plan to invest in the United States through 2025 to foster future mobility. On top of the investment, the state of Georgia expects to attract another $1 billion in additional investment from non-affiliated Hyundai Motor Group suppliers.

Hyundai's battery supplier, SK Innovation's battery unit SK On, has built two adjacent plants in Georgia. The first, which supplies Volkswagen, started production in the first quarter. The second, which will supply Ford Motor, is set to begin production early next year.

A source previously told Reuters that SK On will supply the battery for the Ioniq 7, as well as the battery. SK On can't comment on supply deals involving specific customers.

Hyundai's U.S. investment coincides with U.S. President Biden's arrival in South Korea on Friday.

South Korean auto group, which is one of the five biggest automakers in the world by vehicle sales, has production facilities in Alabama and Georgia. In April, Hyundai Motor said it plans to invest $300 million to add EVs to its Montgomery assembly plant.

In order to expand its EV business in South Korea, Hyundai Motor Group plans to invest 21 trillion won $16.43 billion through 2030.