South Korea’s Hyundai Motor Co (005380.KS) said Friday it will break ground this month on a $5.5 billion electric vehicle and battery plant in the United States.
Hyundai plans to begin commercial production in the first half of 2025 with an annual capacity of 300,000 units. The Oct. 25 groundbreaking for the Hyundai Group “metaplant” in Savannah, Georgia is part of the Hyundai Group’s “commitment of $10 billion by 2025 to foster future mobility in the U.S., including production of EVs,” the company said.
The groundbreaking comes amid anger from Korea and the European Union over U.S. electric vehicle tax policy.
The Inflation Reduction Act, signed by Biden in August, requires EVs assembled in North America to qualify for tax credits in the United States, but excluded Hyundai and its affiliate Kia Corp (000270.KS) from EV subsidies, as they do not yet make the vehicles there, along with major European automakers.