Hyundai Motor has started work on its first mega electric vehicle (EV) factory in Georgia, US, with the South Korean auto giant planning to set up the unit for a whopping $5 billion and this will give a huge leg up to its presence in the American market.
This unit is expected to employ over 8,000 people and will roll out more than 300,000 EVs annually.
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| Kia EV9 may be manufactured from the Georgia unit. |
Trees near the plant site have already been cleared and it is likely to be set up by the year 2025. So, we can expect vehicles to roll out from that year itself.
This mega project is going to transform the region. According to the governor of Georgia Brian Kemp, it will be a transformational project not only for the people of the state but for their children and grandchildren as well.
He also added that this investment will resonate in the entire state of Georgia for generations to come.
With this significant investment, Hyundai plans to lead the transition in the EV space in the US. By 2030, it aims to sell over 3.3 million vehicles annually. This is the same number that Tesla sold up to October in 2022.
Hyundai is not only rolling out big plans for the US, but globally also, it wants to make a big mark in the EV space.
For the purpose, it is lining up cars like the Ioniq 6, which it plans to roll out in Europe this year itself.
According to Hyundai Motor Group executive chair Euisun Sung, Hyundai’s EVs are best in their class and he added, “We aim to be the global leader in electrified vehicles, safety, quality and sustainability.”
It seems Hyundai is trying to be the world leader in EVs rather than trying to achieve leadership in one country.
Hyundai’s ambitious plans come after the US government adopted a policy to accelerate the presence of EVs and slash internal combustion engine (ICE) vehicle sales by a whopping 50 per cent by 2030.
Right now, Hyundai makes its E-GMP platform models like the Ioniq 5 and Ioniq 6 only in South Korea.
Hence, those desiring to buy these vehicles in the US would be left high and dry. So, perhaps this new plant would cater to these buyers in the US.
Some of Hyundai’s upcoming electric vehicles are mainly targeted at the US market. These include the Hyundai Ioniq 7 and Kia EV9, which belong to the large E-GMP SUV segment.
According to reports, these two models may also be made at the new Georgia facility. If these vehicles were not eligible for the $7,500 tax credit by the Joe Biden administration, it would come as a competitive disadvantage.
This $5-billion unit would come as a boon for US electric vehicle buyers as they would not have to wait for their favorite models like the Ioniq 5 and Ioniq 6 and if bigger models (such as the Ioniq 7 and Kia EV9) roll out from this facility, it would definitely give a huge fillip to Hyundai’s EV road map not only in the US but even globally.
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