Hyundai is starting work on the construction of a plant in the United States worth $5.5 billion. This production site will produce electric vehicles by mid-2025.
Hyundai Motor Group, which includes the Hyundai, Kia, and Genesis brands, has just laid the groundwork for the construction of a new electric vehicle manufacturing plant in the United States. The site west of Savannah will have a capacity of 300,000 vehicles per year.
The plant will create more than 8,100 new jobs over the next few years as Kia and Hyundai seek to qualify for a federal tax break by manufacturing electric vehicles in America.
“When President Biden signed the law on reducing inflation this summer, he cut off electric cars that were manufactured in North America from benefits. In the past, the Korean automaker has stated that it plans to begin construction at the site in early 2023.”
Commercial production is scheduled to begin in the first half of 2025.
The state of Georgia already has a good working relationship with Hyundai Motor Group, as Kia Telluride, Sorento, and Sportage crossovers are already produced there. Kia was the first to open a car assembly plant in Georgia.
The plant will produce cars for the entire Hyundai Motor Group, including Kia and Genesis products, as well as produce batteries. According to Hyundai, the plant will use artificial intelligence and data-based optimization at all stages of production, from logistics to procurement, from order collection to production itself.
Upon completion and subject to no further changes in the law, cars manufactured there should be eligible for a federal tax credit. This will be Hyundai’s help, as sales of the Ioniq 5 fell by about 14% in September compared to August. It is possible that before the plant is completed, the two brands may conclude a separate subsidy deal.