Daily Management Review

Hyundai to spend $5.5B on e-cars plant in U.S.


The South Korean carmaker Hyundai stated that it will start constructing a factory to develop electric vehicles and batteries in the United States in October. According to a corporate statement cited by Reuters, the project's expected cost is $5.5 billion. for $5.5 billion

The plant is expected to start on October 25 near Savannah, Georgia. It is estimated that the plant will produce 300,000 vehicles annually. In the first half of 2025, Hyundai plans to begin commercial production at the facility. The undertaking is a component of Hyundai's $10 billion plan to "advance mobility in the United States, including electric vehicle manufacturing."

President of the United States Joe Biden authorized the Inflation Reduction Act of 2022 in August. The measure specifically includes tax breaks for buying electric automobiles. However, this restriction only applies to electric vehicles built in North America, giving domestic producers like Tesla and General Motors an advantage in the American market.

Concern over this choice has been expressed by South Korean manufacturers. In a letter to South Korean President Yoon Suk-yeol in September, Mr. Biden expressed assurance that the new regulations wouldn't hurt the country's automakers and his openness to discuss the matter.

source: reuters.com