[News Article] Hyundai Motor fast-tracks US EV plant to 2024
Hyundai Motor
fast-tracks US EV plant to 2024
Carmaker aims to
complete $7.6b mega plant by October this year in bid for subsidy benefits
By Moon Joon-hyun,
The Korea Herald - Hyundai Motor Group has once again moved up the launch of
its new US plant solely dedicated to producing electric vehicles to October
this year, three months ahead of its current schedule, to enhance its readiness
to toughened subsidy rules. "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
said during an interview with Automotive News, an American automotive industry
media outlet, last Friday. Munoz explained that
initiating production sooner will enable Hyundai to capitalize on the $7,500
federal tax credit for EVs manufactured in North America with specific battery
components and minerals. Construction of the
$7.6 billion EV and battery complex, called Hyundai Motor Group Metaplant
America began in October 2022 in Bryan County, Georgia, with the initial
completion date moved from the second half of 2025 to January 2025, and now to
October 2024, marking the second advancement of the timeline. Hyundai officials
reported last year that over 2,000 workers are engaged in the construction
every week. The urgency to begin
production stems primarily from the Inflation Reduction Act, which incentivizes
the production of EVs in North America. Hyundai has so far adapted to these
stipulations by increasing the lease proportion of its vehicles in the US, navigating
around the requirement for North American assembly to qualify for subsidies. The recent
tightening of EV subsidy qualifications in January has led to even stricter
restrictions on battery component sourcing, disqualifying suppliers associated
with certain foreign nations, most notably China. The metaplant is
slated to produce six models across Hyundai's three brands: Hyundai, Genesis,
and Kia. Although the first model to be manufactured remains unspecified, Munoz
confirmed the lineup would include the much-anticipated three-row Ioniq 7, aiming
for a 2025 launch. The plant is designed with an initial production capacity of
300,000 EVs annually, scalable to 500,000 units depending on demand. Adjacent to the
vehicle assembly plant, a $4.3 billion joint venture with Korean battery maker
LG Energy Solution will focus on battery production with an annual production
capacity of 30 gigawatt-hours. Operations are expected to commence in late
2025. Until then, Hyundai plans to source batteries from other US plants to
meet its production needs. Additionally,
Hyundai has partnered with another Korean battery maker SK On to construct a $5
billion battery plant in Bartow County, Georgia, aimed to begin operations in
the second half of 2025, with a 35 GWh annual capacity, supporting Hyundai's
factory in Montgomery, Alabama, and Kia's plant in West Point, Georgia. The decision by
Hyundai to expedite an already accelerated timeline from Jan. 2025 contrasts
with General Motors and Ford's recent slowdowns in EV and battery factory
investments. Munoz said Hyundai continues to see strong EV sales. "There are very
few Hyundai dealers (in America) that are still not selling the Ioniq EV, and
we are telling them to please hurry up because we are going to continue to bet
on electric vehicles," he said. Last year, Hyundai
Motor Group emerged as a leading player in the US EV market, second only to
Tesla, with sales totaling 94,340 vehicles. Source: https://www.koreaherald.com/view.php?ud=20240214050627
2024.02.15
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