Hyundai Motor Group to invest $5.5 billion to build EV, battery facilities in U.S

By David Shepardson and Heekyong Yang

WASHINGTON/SEOUL (Reuters) -South Korea’s Hyundai Motor Group stated on Friday it plans to speculate about $5.54 billion to construct its first devoted full electrical car (EV) and battery manufacturing services in the US.

Hyundai will break floor on its new facility in Georgia in early 2023 and is anticipated to start industrial manufacturing within the first half of 2025 with an annual capability of 300,000 EV items, the corporate stated in a press release.

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

Hyundai Motor Group, which homes Hyundai Motor Co and Kia Corp, added that the battery manufacturing facility might be established by a strategic partnership, particulars of which might be disclosed at a later stage.

Reuters reported final week that Hyundai was in talks to construct an EV manufacturing plant in the US and had held discussions with Georgia officers.

The plant is a key a part of Hyundai’s $7.4 billion deliberate funding in the US by 2025 to foster future mobility. The state of Georgia expects to draw one other $1 billion in extra funding from non-affiliated Hyundai Motor Group suppliers on high of the funding.

Hyundai’s battery provider, SK Innovation’s battery unit SK On, has constructed two adjoining vegetation in Georgia. The primary, which largely provides Volkswagen AG, began manufacturing within the first quarter. The second, which is able to provide Ford Motor Co, is about to start manufacturing early subsequent 12 months.

SK On will provide the battery for the Ioniq 7, a supply beforehand instructed Reuters. SK On stated it can’t touch upon provide offers involving particular prospects.

Hyundai’s U.S. funding coincides with U.S. President Biden’s arrival in South Korea on Friday.

The South Korean auto group, which is among the many world’s 5 largest automakers by car gross sales, has manufacturing websites in Alabama and Georgia. In April, Hyundai Motor stated it plans to speculate $300 million so as to add EVs in its Montgomery meeting.

Individually, Hyundai Motor Group stated Wednesday it plans to speculate 21 trillion received ($16.43 billion) by 2030 for the enlargement of its EV enterprise in South Korea.

(Reporting by David Shepardson in Washington and Heekyong Yang in Seoul; Enhancing by Kirsten Donovan, Bernard Orr)