Hyundai Motor Group of South Korea announced on Friday that it will invest $5.54 billion in the United States to develop its first dedicated complete electric vehicle (EV) and battery manufacturing facility.
Hyundai stated in a statement that it will break ground on its new facility in Georgia in early 2023 and expects to start commercial production in the first half of 2025, with an annual capacity of 300,000 electric vehicles.
Hyundai also stated that it plans to generate 8,100 jobs
The battery production plant will be developed through strategic collaboration, the details of which will be revealed at a later time, according to Hyundai Motor Group, which includes Hyundai Motor Co (005380. KS) and Kia Corp (000270. KS).
According to Reuters, Hyundai is in talks to develop an electric vehicle manufacturing factory in the United States and has met with Georgia officials.
The factory is a crucial component of Hyundai’s $7.4 billion investment plan in the United States to support future transportation until 2025. On top of the investment, Georgia hopes to get an extra $1 billion in funding from non-affiliated Hyundai Motor Group suppliers.
SK Innovation’s (096770. KS) battery unit SK On, Hyundai’s battery supplier, has constructed two nearby factories in Georgia. The first began production in the first quarter, primarily to supply Volkswagen AG (VOWG p.DE). The second, which will supply Ford Motor Company (F.N), is expected to start production in early 2019.
According to Reuters, SK On will provide the battery for the Ioniq 7. SK On stated that it is unable to comment on supply agreements with specific clients.
Hyundai’s investment in the United States coincides with US Vice President Joe Biden’s visit to South Korea on Friday. Alabama and Georgia are home to the South Korean carmaker, which is among the world’s top five automakers by vehicle sales. Hyundai Motor said in April that it will invest $300 million in its Montgomery assembly plant to add electric vehicles.
Separately, Hyundai Motor Group announced on Wednesday that it expects to invest 21 trillion won ($16.43 billion) in its EV business in South Korea until 2030.