Hyundai Motor Group announced that it will invest 6.3 trillion won in the US state of Georgia to establish an electric vehicle production base, including a factory dedicated to electric vehicles and a battery cell plant.
It is Hyundai Motor Group's first electric vehicle-only plant in the United States, and it was suddenly announced in time for US President Biden's visit to Korea.
Hyundai Motor Group signed an 'Electric Vehicle-Exclusive Plant Investment Agreement' with the Georgia State Authority in the Brian County, Georgia area, where the electric vehicle plant construction site is located.
In a video greeting, Hyundai Motor Group Chairman Chung Eui-sun said, "We will establish a production base exclusively for electric vehicles in the United States in Georgia and produce innovative electric vehicles for American customers."
“As the first smart factory in the United States, such as the introduction of innovative manufacturing technologies and the use of new and renewable energy, we expect that it will serve as an important bridgehead for the achievement of Hyundai Motor Group’s future mobility vision.”
In response to Hyundai Motor Group's investment decision, the Georgia state government promised to provide incentives such as tax benefits and provide continuous support in the future to support plant establishment and operation stabilization, Hyundai Motor Group said.
The plant will start construction next year and be completed in the first half of 2025, with an annual production capacity of 300,000 units.
Hyundai Motor Group explained, “We will be able to respond nimbly to the growing demand for electric vehicle market, market segmentation and diversification of customer needs, and lay the groundwork for local production and supply, which is essential for establishing market strategies.”
In particular, since the new plant will be located 400km away from Kia's US production subsidiary in Georgia, it is expected that it will be able to share parts suppliers and logistics systems with Hyundai Motor's US production subsidiary in Alabama.
In addition, we plan to build a battery cell plant near this plant to provide a stable supply of batteries, which are the core of electric vehicles.