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Hyundai Motor Group to invest $5.5 billion to build electric and battery facilities in US

South Korea’s Hyundai Motor Group said on Friday it plans to invest about $5.54 billion to build its first all-electric vehicle (EV) and battery manufacturing facilities in the United States.

Hyundai will inaugurate its new plant in Georgia in early 2023 and is expected to begin commercial production in the first half of 2025 with an annual capacity of 300,000 electric units, the company said in a statement.

The South Korean automotive group has announced its intention to create around 8,100 jobs.

Hyundai Motor Group, which houses Hyundai Motor Co and Kia Corp, added that the battery manufacturing plant will be established under a strategic partnership, details of which will be disclosed later.

Reuters reported last week that Hyundai was in talks to build an electric vehicle manufacturing plant in the United States and had held talks with Georgian officials.

The plant is a key part of Hyundai’s planned $7.4 billion investment in the United States through 2025 to support future mobility. The state of Georgia expects to attract an additional $1 billion in incremental investment from vendors not affiliated with the Hyundai Motor Group on top of the investment.

Hyundai’s battery supplier SK On, the battery unit of SK Innovation, has built two adjacent plants in Georgia. The first, which mainly supplies Volkswagen AG, started production in the first quarter. The second, which will supply Ford Motor Co, is expected to begin production early next year.

SK On will supply the battery for the Ioniq 7, a source previously told Reuters. SK On said he could not comment on supply deals involving specific customers.

Hyundai’s U.S. investment coincides with U.S. President Biden’s arrival in South Korea on Friday.

The South Korean automaker, which is among the top five automakers in the world by vehicle sales, has production sites in Alabama and Georgia. In April, Hyundai Motor announced plans to invest $300 million to add electric vehicles to its Montgomery assembly.

Separately, Hyundai Motor Group said on Wednesday it plans to invest 21 trillion won ($16.43 billion) through 2030 to expand its electric vehicle business in South Korea.

(Edited by : Sudarsanan Mani)

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