New Delhi. South Korea’s Hyundai Motor Group said it plans to invest about $5.54 billion (about Rs 43,110 crore) to build its first dedicated full electric vehicle (EV) and battery manufacturing facilities in the United States.
Hyundai will start its new facility in Georgia in early 2023 and is expected to begin commercial production in the first half of 2025 with an annual capacity of 300,000 EV units, the company said in a statement.
The South Korean auto group said it intended to create about 8,100 jobs.
Hyundai Motor Group, which houses Hyundai and Kia, said the battery manufacturing facility would be set up through a strategic partnership, details of which would be disclosed later.
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Reuters reported last week that Hyundai was in talks to build an EV manufacturing plant in the United States and had discussed it with Georgia officials.
The plant is a significant part of Hyundai’s planned investment of $7.4 billion (about Rs 57,585 crore) in the United States by 2025 to promote future mobility. The state of Georgia is expected to attract $1 billion (about Rs 7,780 crore) in additional investment from non-affiliated Hyundai Motor Group suppliers on top of the investment.
SK On, the battery arm of Hyundai’s battery supplier, SK Innovation, has built two adjacent plants in Georgia. The first, which supplies most of Volkswagen, began production in the first quarter. The second, which will supply Ford Motor, is set to begin production early next year.
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SK On will supply batteries for the Ioniq 7, a source previously told Reuters. SK On said it could not comment on supply deals involving specific customers.
Hyundai’s US investment coincides with the arrival of US President Biden in South Korea on Friday.
The South Korean auto conglomerate, which is one of the world’s five largest automakers in terms of vehicle sales, has production sites in Alabama and Georgia. In April, Hyundai Motor said it plans to invest $300 million (about Rs 2,330 crore) to add EVs to the Montgomery assembly.
Separately, Hyundai Motor Group on Wednesday said it plans to invest KRW 21 trillion (about Rs 1,28,300 crore) by 2030 to expand its EV business in South Korea.
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