South Korean legacy automaker Hyundai is exploring the possibility of adding hybrid or plug-in hybrid electric vehicles at its upcoming $7.6 billion factory in Georgia in addition to battery-electric vehicles, CNBC reported.
This production reevaluation is apparently due to the slower-than-expected electric vehicle uptake and the emissions standard revision in the United States.
Hyundai may cancel original BEV-only production plans in Georgia
Hyundai initially announced plans to produce only battery-electric vehicle models at its upcoming factory in Georgia, according to President and Global Chief Operating Officer José Muñoz.
Hyundai is reportedly analyzing whether or not to build other electrified vehicle alternatives to BEVs at its under-construction Georgia factory, including hybrid or plug-in hybrids.
“We are now getting ready for a ramp-up on electric vehicles and then we are evaluating if we need to maybe add some additional technologies into the plan depending on the market evaluation.”
José Muñoz, Hyundai President and Global Chief Operating Officer
Market challenges prompted Hyundai to reevaluate plans
Hyundai’s sudden reevaluation of its original production plan in Georgia comes after the industry realized slower-than-expected electric vehicle uptake.
In addition, the Biden administration revised the country’s emissions standards to expand its focus and resources to hybrid and plug-in hybrid electric vehicles rather than battery-electric vehicles alone.
Hyundai committed to invest $12.6 billion in Georgia, covering various projects such as the new Hyundai Motor Group Metaplant America site in Bryan County and battery joint ventures with LG Energy Solution and SK On.
President Muñoz reiterated its dedication to electric mobility. However, it admitted that hybrids and plug-in hybrid models may better attract customers.
“Everything is on the table. We will adjust to the market demand and, for the time being, we are on track for what the regulators are requesting.”
José Muñoz, Hyundai President and Global Chief Operating Officer
On Wednesday, Hyundai unveiled a revamped Tucson crossover with gas-powered, hybrid, and plug-in hybrid electric vehicle model options.
“I think the PHEV is a key strategic topic for us. We’ve been one of the pioneers on PHEV and I think we want to take advantage of that. But hybrid is very important … our hybrid production in growing. There’s a high demand for it. So you’re going to see an increase in the mix of hybrids in Hyundai as well.”
José Muñoz, Hyundai President and Global Chief Operating Officer
Hyundai’s Georgia EV factory
As mentioned, Hyundai invested $7.6 billion in its Metaplant development in Georgia. It will produce six electric vehicle models across Hyundai’s three brands, including Hyundai, Kia, and Genesis.
It also has an adjacent battery plant under the joint venture between Hyundai and LG Energy Solution. Hyundai expects it to hit an annual production capacity of 30 GWh, which is enough to support the factory’s EV production.
The Georgia factory will aid Hyundai electric vehicles in accessing federal tax credits of up to $7,500 in North America.
