Hyundai Motor Group of South Korea announced on Friday that it aims to invest $5.54 billion in its first dedicated complete electric vehicle (EV) and battery manufacturing facility in the United States.
Hyundai stated in a statement that it would break ground on its new plant in Georgia in early 2023 and expects to commence commercial production in the first half of 2025 with an annual capacity of 300,000 EV vehicles.
The South Korean automaker stated that it plans to generate around 8,100 jobs.
The battery production plant will be developed through strategic collaboration, the details of which will be published later, according to Hyundai Motor Group, which includes Hyundai Motor Co (005380.KS) and Kia Corp (000270.KS).
According to Reuters, Hyundai is in negotiations with Georgia officials about establishing an EV production unit in the United States.
The factory is an important component of Hyundai’s $7.4 billion investment in the United States through 2025 to promote future transportation. On top of the investment, Georgia intends to attract an additional $1 billion in investment from non-affiliated Hyundai Motor Group suppliers.
Hyundai’s battery supplier, SK Innovation’s (096770. KS) battery company SK On, has constructed two nearby Georgia factories. The first, which mostly serves Volkswagen AG (VOWG p.DE), began manufacturing in the first quarter. The second, which will supply Ford Motor Company (F.N), is scheduled to start production early next year.
According to Reuters, SK On will supply the battery for the Ioniq 7. SK On said that it is unable to comment on supply arrangements involving individual clients.
Hyundai’s investment in the United States coincides with US Vice President Joe Biden’s trip in South Korea on Friday.
The South Korean carmaker, which is one of the world’s top five automakers in terms of vehicle sales, has manufacturing plants in Alabama and Georgia. Hyundai Motor announced plans to invest $300 million in its Montgomery assembly plant to introduce EVs in April.
Separately, Hyundai Motor Group announced Wednesday that it intends to invest 21 trillion won ($16.43 billion) in the growth of its EV business in South Korea until 2030.
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