Hyundai launches construction of EV factory in the USA
Hyundai Motor Group has started construction of its new electric car plant in the US state of Georgia. The Bryan County plant is scheduled to begin production in the first half of 2025 with an annual capacity of 300,000 Hyundai, Kia and Genesis electric cars and batteries.
Hyundai announced the plant in May and originally planned to start construction in early 2023. Just weeks ago it was leaked that the Korean company wanted to break ground in October because of the new rules for electric car subsidies in the USA, which has now happened.
However, despite Hyundai bringing forward the start of construction, the planned start of operations in the first half of 2025 still applies. Hyundai repeats this well-known announcement in the current announcement on the groundbreaking. It is possible that the opening date will be updated later – or Hyundai is simply aiming to start production towards the beginning of 2025 – rather than towards May/June 2025.
The automaker plans to invest just over $5.5 billion and create 8,100 jobs in Hyundai Motor Group Metaplant America (HMGMA), often just called Metaplant. Not only did the state’s governor, Brian P. Kemp, come to Savannah for the Georgia ceremony, but so did Hyundai CEO Euisun Chung.
“Today, our EVs are recognized as best in class, and with this partnership, we are determined to be the global leader in electrification, safety, quality, and sustainability,” said the Hyundai CEO. “With the Hyundai Motor Group Metaplant America, we will continue to evolve beyond an automaker to the world’s leading mobility solutions provider.”
However, the South Korean group’s investment decision is politically explosive: the government of South Korea and some EU countries disagree with the new US subsidy for electric vehicles, specifically the US value-added requirements for eligibility. According to Reuters, US President Joe Biden had expressed his willingness in October to “continue discussions with South Korea on the recent US legislation”.
Hyundai currently builds its E-GMP models such as the Ioniq 5 or the Ioniq 6 only in South Korea – so buyers of these vehicles would be left empty-handed in the US. Some of Hyundai’s upcoming electric models are particularly targeted at the US market – such as the Hyundai Ioniq 7 and Kia EV9 large E-GMP SUVs. According to earlier reports, these two models will also initially be built at the new Georgia plant. If these vehicles were not eligible for the $7,500 tax credit, it would be a major competitive disadvantage.
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