Hyundai Motor Group expedites its U.S. EV and battery plant construction to capitalize on North American tax credits for local EV production.
Hyundai aims to benefit from the Inflation Reduction Act’s tax credit for North American-assembled EVs.
The 300,000-unit annual capacity plant in Georgia plans to begin production earlier than the initial 2025 target.
Hyundai and Kia have significant manufacturing facilities in Georgia.
Hyundai Motor Group has announced its intent to hasten the development of its dedicated electric vehicle and battery manufacturing facility in the U.S. This strategic move aims to maximize the benefits from tax credits extended to locally produced EVs. The decision was highlighted by Hyundai’s President and Global COO, Jose Munoz, during a recent event in Atlanta where Hyundai fortified its commitment to hydrogen-fueled EVs by partnering with Georgia Tech.
The motivation behind this accelerated pace is the Inflation Reduction Act. This legislation offers a tax credit of up to US$7,500 to consumers purchasing EVs, provided these vehicles are assembled within North America. With a production capacity of 300,000 units annually, Hyundai’s Georgia plant was originally scheduled to start operations in the first half of 2025. However, Munoz expressed optimism about commencing production earlier, potentially advancing the timeline by a few months.
It’s worth noting that Hyundai’s presence in the U.S. manufacturing landscape isn’t new. Both Hyundai Motor Co. and its affiliate, Kia Corp., operate car manufacturing units in Georgia. Furthermore, Hyundai has already initiated the production of its all-electric GV70 SUVs in Alabama under the Genesis brand.