Hyundai confirmed plans to open its first local electric vehicle and battery complex in the US in October this year, three months ahead of the initial timeline.
The move is part of the South Korean legacy automaker’s strategy to benefit from the federal tax credits of up to $7,500 under the Inflation Reduction Act, Automotive News reports, citing Hyundai Motor America Chief Executive.
Earlier than planned opening
Hyundai’s enormous electric vehicle and battery factory in Georgia will officially start operations in October 2024. It is expected to hit an initial annual production capacity of 300,000 EVs, with the potential to reach up to 500,000 depending on demand.
“We’re pulling ahead because everybody knows how important it is because so far we don’t qualify for federal tax credits.”
Hyundai Motor America CEO Jose Munoz
Hyundai will initially obtain the necessary batteries from other factories in the US to support the Georgia complex’s electric vehicle production. The adjacent battery facility will start producing the batteries in January next year.
About the Georgia factory
Hyundai invested a whopping $7.6 billion in the Metaplant’s development. It will handle the assembly of six electric vehicle models across Hyundai’s three brands, including Hyundai, Kia, and Genesis.
The complex has an adjacent battery factory under the joint venture of Hyundai and LG Energy Solution. Impressively, it is expected to have an annual production capacity of 30 gigawatt-hours, sufficient to support the assembly factory’s EV production.
CEO Munoz omitted to disclose which models will first undergo production at the new Georgia factory. However, he previously announced that it will soon manufacture the three-row Ioniq 7, which is set to arrive next year.
Significance
Hyundai’s move to accelerate its electric vehicle efforts in the US market contradicts several local automakers’ decision to scale back, including Ford and GM.
CEO Munoz emphasized that opening the Georgia factory earlier will enable Hyundai electric vehicles to benefit from the $7,500 federal tax credits in North America.
As EV-a2z reported, the US imposed new standards on electric vehicles’ eligibility for federal tax credits this year. It disqualifies models with battery components produced or assembled by a “foreign entity of concern” (FEOC), including China, Iran, North Korea, and Russia.
“Of course, we want our components and critical minerals not coming from China, so our supply chain procurement people are working really hard to ensure full compliance. There are a lot of moving pieces, but I am confident very shortly after we start, we will be compliant.”
Hyundai Motor America Chief Executive Jose Munoz
Hyundai continues to enjoy solid sales growth in the US, owing to its award-winning Ioniq 5. The EV’s sales apparently surged nearly 50% in 2023. The Hyundai Ioniq 6 is also “getting a good pace,” while the Kona EV is “doing reall well,” CEO Munoz noted.
All that said, it would be unsurprising if Hyundai hits record-breaking sales this year, considering its imminent qualification for the federal tax credits of up to $7,500. In addition, Hyundai will start equipping its next-gen models with Tesla’s NACS port by the fourth quarter, while older EVs will receive adapters to access the Musk-led company’s enormous Supercharger network.
