WASHINGTON – Korea Hyundai Motor said on Friday that it will break ground this month for $5.5 billion tram and the battery grown in the United States.
Hyundai plans to start commercial production in the first half of 2025 with an annual capacity of 300,000 units. The company said that on October 25, the ground-breaking ceremony for the “electric supercar” of the Hyundai Group in Savannah, Georgia is part of “Hyundai Group’s $10 billion commitment by 2025 to accelerate mobility.” future moves in the US, including electric vehicle production”.
The move comes amid anger in South Korea and the European Union over the US electric vehicle tax policy.
The Inflation Reduction Act, signed by Biden in August, requires electric vehicles to be assembled in North America to qualify for tax credits in the United States, but excludes Hyundai and its affiliates. That Corp from the EV subsidy, as it does not yet manufacture vehicles there, along with the major European automakers.
The law states that about 70% of electric vehicles are immediately ineligible for tax credits of up to $7,500 per vehicle.
Biden has expressed a willingness to continue negotiations with South Korea over recent US legislation denying subsidies to most foreign electric vehicle (EV) manufacturers, South Korea said earlier this month.
Biden has also repeatedly praised investments by major foreign automakers to build electric vehicles and battery plants in the United States, including an announcement Tuesday by Honda’s motobike Motor and LG Energy that they will place a $4.4 billion battery plant in Ohio.
Biden offered the assurance in a letter to South Korean President Yoon Suk-yeol, who asked the US president for help last month to assuage Seoul’s concerns that the new US regulations will hurt South Korean automakers, Reuters reported.
As a result of the August law, only about 20 electric vehicles are eligible for subsidies under the new rules, among them models from Ford Motor Co and BMW car.
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