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Hyundai plans to contribute $5.5 billion to construct its first dedicated EVs and batteries in the world in Georgia, the US



Hyundai plans to contribute 5.5 billion to construct its first dedicated EVs and batteries in the world in Georgia the US 1

South Korea’s Hyundai Motor Group — firmly No. 2 in the U.S. electric vehicle market in the first quarter — on Friday affirmed intends to spend $5.54 billion to construct its first dedicated full electric vehicle (EV) and battery manufacturing plant in the world in this Georgia town in the U.S. Providers will contribute an extra $1 billion.

The plant, around 30 miles northwest of Savannah, Ga., is a foundation of Hyundai’s long-term investment in electric vehicles and would make it the first Asian automaker to commit a North American plant exclusively to EV output. All vehicles produced there will be sold in the U.S.

Alongside the new plant, the automaker is wanting to assemble a battery-manufacturing factory with a joint partner, the automaker’s CEO told. A declaration will come “shortly.”

Hyundai will break ground on its new facility in Georgia in mid-2023 and is expected to start commercial production in the first half of 2025 with an annual capacity of 300,000 EV units, the organization said in a statement.

The plants will be situated outside of Savannah, Georgia, in Bryan County, the organization said. The operations are supposed to open during the first half of 2025, with an annual production capacity of 300,000 vehicles, as per the South Korean automaker. Around 8,100 new jobs are to be made.

The investment is the latest example of a global automaker trying to establish new supply chains and production facilities in the U.S. to produce electric vehicles, which are expected to develop exponentially during the decade.

It’s likewise a significant success for the Biden administration, which has been encouraging organizations to establish electric vehicle supply chains and production in the U.S. instead of abroad. President Joe Biden last year set a target for EVs to represent half of all new auto sales in the country by 2030.

“The Group is accelerating its electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030,” Hyundai said in a release.

Hyundai additionally said it hopes to create a “wide range of fully electric vehicles for U.S. customers at the new Georgia EV plant,” noticing extra details will come at a later date.

The organization declared the plans, details of which were recently revealed, after officially agreeing with Georgia; state and local incentives and different subtleties for the new facilities were not revealed.

Hyundai said it selected Georgia “due to a range of favorable business conditions, including speed-to-market, talented workforce, as well as an existing network of … affiliates and suppliers.”

The plant is a key part of Hyundai’s $7.4 billion planned investment in the United States through 2025 to encourage future mobility. The state of Georgia hopes to attract one more $1 billion in extra investment from non-affiliated Hyundai Motor Group providers on top of the investment.

Hyundai’s battery supplier, SK Innovation’s (096770. KS) battery unit SK On, has constructed two adjoining plants in Georgia. The first, which generally supplies Volkswagen AG (VOWG_p.DE), began production in the first quarter. The second, which will supply Ford Motor Co (F.N), is set to start production early next year.

SK On will supply the battery for the Ioniq 7, a source recently told. SK On said it can’t remark on supply deals including explicit customers.

Hyundai’s U.S. investment coincides with U.S. President Biden’s appearance in South Korea on Friday.

The South Korean auto group, which is among the world’s five biggest automakers by vehicle sales, has production sites in Alabama and Georgia. In April, Hyundai Motor said it intends to invest $300 million to add EVs to its Montgomery assembly.

Separately, Hyundai Motor Group said Wednesday it intends to contribute 21 trillion won ($16.43 billion) through 2030 for the development of its EV business in South Korea.

The Hyundai group — creator of the Hyundai, Kia, and Genesis brands — has sworn $16 billion around the world through 2030 for EVs. Kia Corp. has reserved about half of its five-year, $22 billion investment budget for future projects, like EVs.

The group is targeting annual sales of more than 3 million EVs globally by 2030. The Hyundai and Genesis brands are creating 17 battery-electric models around the world by 2030, and Kia plans a lineup of 14 EVs by 2027.

In the U.S., Hyundai sells the Kona Electric and Ioniq 5 crossovers, Kia sells the Niro EV and EV6 crossovers, and Genesis just launched the GV60, which shares a dedicated EV stage with the Ioniq 5 and EV6. By next year, Hyundai will add an electric vehicle, Kia will launch a three-row electric crossover, and Genesis will add electric versions of the G80 sedan and GV70 crossover.

Hyundai didn’t say which models would be worked at the new plant, yet the automaker looks to source more EVs in the basic North American market. In its press release, the organization said it will produce a “wide range of innovative EV models” there.

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