Hyundai Motor Group to invest $5.5 billion to build EV, battery
facilities in U.S
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[May 21, 2022] By
David Shepardson and Heekyong Yang
WASHINGTON/SEOUL (Reuters) -South Korea's
Hyundai Motor Group said on Friday it plans to invest about $5.54
billion to build its first dedicated full electric vehicle (EV) and
battery manufacturing facilities in the United States.
Hyundai will break ground on its 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 EV units, the company said in a
statement.
The South Korean auto group said it intends to create about 8,100 jobs.
Hyundai Motor Group, which houses Hyundai Motor Co and Kia Corp, added
that the battery manufacturing facility will be established through a
strategic partnership, details of which will be disclosed at a later
stage.
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Reuters reported last week that Hyundai was in talks to build an EV
manufacturing plant in the United States and had held discussions with
Georgia officials.
The plant is a key part of Hyundai's $7.4 billion planned investment in
the United States through 2025 to foster future mobility. The state of
Georgia expects to attract another $1 billion in additional investment
from non-affiliated Hyundai Motor Group suppliers on top of the
investment.
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![](../images/052122pics/busine27.jpg)
The logo of Hyundai Motor Company is pictured at the New York
International Auto Show, in Manhattan, New York City, U.S., April
13, 2022. REUTERS/Andrew Kelly
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Hyundai's battery supplier, SK Innovation's battery unit SK On, has
built two adjacent plants in Georgia. The first, which mostly supplies
Volkswagen AG, started production in the first quarter. The second,
which will supply Ford Motor Co, is set to begin production early next
year.
SK On will supply the battery for the Ioniq 7, a source previously told Reuters.
SK On said it cannot comment on supply deals involving specific customers.
Hyundai's U.S. investment coincides with U.S. President Biden's arrival in South
Korea on Friday.
The South Korean auto group, which is among the world's five biggest automakers
by vehicle sales, has production sites in Alabama and Georgia. In April, Hyundai
Motor said it plans to invest $300 million to add EVs in its Montgomery
assembly.
Separately, Hyundai Motor Group said Wednesday it plans to invest 21 trillion
won ($16.43 billion) through 2030 for the expansion of its EV business in South
Korea.
(Reporting by David Shepardson in Washington and Heekyong Yang in Seoul; Editing
by Kirsten Donovan, Bernard Orr)
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