Hyundai to build first battery and electric vehicle unit in Georgia in 2023, plans to invest $5.54 billion

news7g05/21/2022

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Hyundai to Build First EV and Battery Manufacturing Unit in Georgia in 2023, Plans to Invest $5.54 Billion

South Korea’s Hyundai Motor Group on Friday said it plans to invest about $5.54 billion (about Rs 43,110) to build first dedicated battery and fully electric vehicle (EV) production facilities. its first in the United States.

Hyundai will break ground on the 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 EVs, the company said in a statement.

The Korean auto group said it plans to create about 8,100 jobs.

Hyundai Motor Corporation, home to Hyundai and Thatadds that the battery production facility will be established through a strategic partnership, details of which will be revealed at a later stage.

Reuters reported last week that Hyundai is in talks to build an electric vehicle factory in the United States and has held discussions with Georgia officials.

The plant is a key part of Hyundai’s US$7.4 billion (approximately Rs 57,585) investment plan in the United States through 2025 to promote future mobility. The state of Georgia is expected to attract an additional $1 billion (approximately 7,780 crore) of additional investment from Hyundai Motor Group’s unaffiliated suppliers on top of the investment amount.

Hyundai’s battery supplier, SK Innovation’s SK On battery unit, built two factories near each other in Georgia. First, mainly supplies Volkswagen, started production in the first quarter. Second, will provide Ford Motoris set to start production early next year.

SK On will supply batteries for the Ioniq 7, a source previously told Reuters. SK On said it could not comment on offers related to specific customers.

Hyundai’s US investment coincides with US President Biden’s to Korea on Friday.

The South Korean automaker, which is among the world’s five largest automakers by vehicle sales, has production sites in Alabama and Georgia. In April, Hyundai Motor said it plans to invest $300 million (approximately Rs 2,330) to add electric vehicles to its Montgomery assembly system.

Separately, Hyundai Motor Group said on Wednesday that it plans to invest 21 trillion KRW (approximately Rs 1,28,300) through 2030 to expand its electric vehicle business in South Korea.

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