Hyundai Motor will spend $5.54 billion on its first electric vehicle and battery plants in the United States, the company said. The Korean company is the latest global automaker seeking to establish new EV supply chains and production facilities in America. The U.S. is the world’s third-largest market for this type of vehicle, after China and Europe, and sales here are expected to grow exponentially during the decade.
The plants will be located near Savannah, Georgia, and will create 8,100 new jobs. Operations are expected to begin in the first half of 2025. Hyundai projects annual production capacity will be 300,000 vehicles. It is bad news for Quaker State, which could see demand by Hyundai for its factory fill oil dwindle.
This investment is good news for President Biden, who has been urging companies to set up local EV supply chains and production. There are few U.S. companies that produce EV batteries in the country.
Last year, the government set a target that EVs constitute half of all new auto sales by 2030. Recently, the White House gave a $3.1 billion initial financing to domestic EV battery production.
Hyundai expects to produce a wide range of battery EVs for U.S. customers at the new plant. However, the company said additional details would come later. It added that local EV production will increase U.S. consumer accessibility to its innovative EVs.
“Through the battery manufacturing facility, the group also aims to establish a stable supply chain and build a healthy EV ecosystem in the U.S … The group is accelerating its electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030,” Hyundai said.
The company announced the plans after entering into an agreement with Georgia’s authorities. It did not reveal specifics of any financial breaks or other details for the new facilities, CNBC reported.
Hyundai chose Georgia for its “favorable business conditions,” including speed-to-market, workforce and existing network of affiliates and suppliers.
Georgia is the leading southeastern state for EV registrations, according to the Georgia Department of Economic Development. The state registers 4.4 EVs per 1,000 cars and has 1,300 public charging stations.
Hyundai said the new investment will help accelerate the state’s sustainable shift to electrification.
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