According to people familiar with the matter, Hyundai plans to announce a new electric vehicle manufacturing plant in the United States and is in talks with Georgia. Asked about the investment plan, Hyundai Motor said in a statement to Reuters: "we are pleased to announce the plan to build a new electric vehicle factory in the United States, but we have no details to share at this stage."
Three people familiar with the negotiations revealed that Hyundai has been in-depth discussions with Georgia officials on establishing a special electric vehicle factory in the state. Details of the investment, including expected costs and the number of jobs expected to be created, are unclear.
If the plan is finalized, the new plant will provide services for Hyundai and Kia, which will soon launch two pure electric SUVs for the U.S. market - IONIQ 7 and ev9.
Hyundai Motor announced the investment agreement at a time when the US President Biden administration has been promoting increased investment in electric vehicles and related suppliers to create jobs and promote the clean energy agenda. Hyundai's choice of Georgia also means that the state will achieve a major victory in economic development. Georgia has been trying to transform itself into a regional center of the emerging electric vehicle industry.
Another person familiar with the matter said Hyundai sought to announce its investment in electric vehicle production in the United States later this month in line with President Biden's plan to visit Seoul. Biden will go to South Korea on May 20 to meet with the new president of South Korea.
In April, Hyundai Motor announced that it would invest $300 million to produce a pure electric version of the Denise GV 70 and a hybrid Santa Fe at its Alabama plant. Gennisseth GV 70 is the first electric vehicle produced by Hyundai in the United States.
Kia also said last month that it was considering transferring production to the United States, but would not consider establishing a special electric vehicle factory on its own. Kia said it would have 14 electric vehicles by 2027. Hyundai Motor said it would launch 17 electric vehicles by 2030, including 6 of its luxury brand Denise.
Sk on, the battery Department of SK innovation, a Hyundai battery supplier, has just established two adjacent factories in Georgia. The first factory mainly supplies Volkswagen and was put into operation in the first quarter of this year. The second plant will provide batteries for Ford and is expected to start production early next year. Sk on will also provide batteries for Hyundai IONIQ 7, according to a person familiar with the matter.