Hyundai to Break Ground in Georgia Plant on Oct. 25
- October 17, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
South Korea’s Hyundai announced on Friday that it will break ground on Oct. 25 in its $5.5 billion electric vehicle (EV) and battery plant in the U.S. state of Georgia. The company plans to begin production with an annual capacity of 300,000 units by the first half of 2025. The company said the groundbreaking for the new plant is part of its “commitment of $10 billion by 2025 to foster future mobility in the U.S., including production of EVs,”
The announcement comes amid concerns from South Korea and the European Union over Biden’s Inflation Reduction Act (IRA) which includes EV tax credits.
The IRA, signed by Biden into law in August, requires EVs assembled in North America to qualify for tax credits, which excluded Hyundai and its affiliate Kia, as they do not make those vehicles there, along with major European carmakers.
The law made about 70% of EVs immediately ineligible for the tax credits of up to $7,500 per vehicle.
South Korea said earlier this month that Biden has expressed willingness to continue talks over recent U.S. legislation that denies subsidies to most foreign makers of EVs.
Biden has also repeatedly praised foreign vehicle manufacturers and battery makers for their investments in the United States, including an announcement last week by Honda and LG Energy that they would develop a $4.4 billion battery plant in Ohio.
South Korean President had previously asked Biden for assurances to allay Seoul’s concerns that the new U.S. rules would hurt South Korea’s automakers.
As a result of the IRA, only about 20 EVs qualify for subsidies under the new rules, among them models from Ford and BMW.
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