Automaker response to the EV tax credit provisions in the recently enacted Inflation Reduction Act has been swift, and it has been what legislators hoped to achieve: more EV jobs in the United States.
Specifically, Hyundai announced accelerated plans to invest $5.54 billion to build a factory near Savannah, Georgia to produce both finished electric vehicles and batteries.
According to Yonhap News Agency, a knowledgeable source stated Hyundai will break ground on the factory later this year with a goal to begin EV production in the United States in the second half of 2024. Those plans are ahead of the previously stated schedule to break ground in 2023 and begin production in 2025. The new factory is expected to have production capacity of up to 300,000 vehicles per year.
Hyundai is hardly alone in this, as Honda and General Motors recently announced a partnership to build EVs in America using GM’s Ultium-based technology from the U.S. Additionally, Volkswagen began building its electric ID.4 in Tennessee in July. Battery production investments include from both South Korean giant Samsung and Japan’s Panasonic Holdings to create new factories in the United States.
Hyundai’s big plans for EVs
Between Hyundai and its sister brands Kia and Genesis, the South Korean conglomerate expects to release up to 31 different EV models by 2030. The company expects to sell up to 3.23 million EVs in 2030, with up to 840,000 of those to be sold in the United States. The company’s goal is 12% of the global EV market share by the end of this decade.
This news comes on the heels of prior announcements of additional investment in Hyundai Motor Co.’s North American production facilities. In April of this year, the company announced a $300 million investment in new assembly lines for its Alabama factory to begin production of ecologically friendlier models such as the Hyundai Santa Fe hybrid and the all-electric Genesis GV70 SUV.
Hyundai’s electrification efforts are being recognized, as Hyundai Motor Group companies collected 17 awards in April from the International Forum Design Awards (iF) competition. The German-organized competition bestowed awards to Hyundai in categories including product, professional concept, interior architecture, communication, and user interface. Awards were presented to the Kia EV6 and Genesis GV60 EV.
New investment affiliate
Hyundai Motor Group revealed its intention to create a new investment affiliate in the United States. The new entity will be called HMG Global, and will be funded by Hyundai Motor Co., Kia Corp., and parts-manufacturing Hyundai Mobis Co.
According to the June announcement, “The establishment of the new affiliate will enable us to more quickly invest in companies with new technologies in the United States.”
The total investment in the new company, expected to pass regulatory approval this month, will be $578 million, split roughly 50% to Hyundai, 30% to Kia, and 20% to Hyundai Mobis. Hyundai’s controlling interest in robotics company Boston Dynamics will also be transferred to the new entity.
The announcement came after Hyundai Motor Group chairman Euisun Chung held a meeting with President Joe Biden during the president’s Asian tour in May. Taken together, Hyundai companies plan up to $10.5 billion in investments in the U.S. market.