Hyundai likely to unveil US EV plant plans in May

Hyundai Motor Co. is preparing to announce a plan to build its first electric vehicle plant in the US, a source familiar with the matter said on Monday, following a media report that the South Korean carmaker is in advanced talks with the US state of Georgia to build an EV plant there.

The new plant under consideration is estimated to cost billions of dollars, accounting for the bulk of the $7.4 billion Hyundai plans to pump into its US operations by 2025.

"My understanding is that Hyundai Motor will confirm a plan to build an EV-dedicated plant in the US this month," the source told The Korea Economic Daily.

According to a Reuters report on May 9, Hyundai has been in advanced discussions with Georgia officials to build an EV factory in the US state, citing three unnamed sources with knowledge of the talks.

The new Georgia EV facility, if finalized, will likely be located near the existing plants of both Hyundai and Kia Corp. under the Hyundai Motor Group and roll out a pair of fully electric SUVs -- Hyundai's IONIQ 7 and Kia's EV9 -- aimed at the US market, the report said.

Hyundai had been working to announce its US investment in EV manufacturing sometime later this month to coincide with US President Joe Biden's planned visit to Seoul on May 20, following South Korean President Yoon Suk-yeol's inauguration on May 10, reported Reuters, citing another source.

The company declined to comment on the report.

Last year, Ford Motor Co. selected the state of Tennessee as the site for its new EV and battery plant, for which it will spend $5.6 billion.

The Hyundai Motor Group has been using its existing production lines to manufacture both combustion engine cars and EVs.

Building EV-only production lines in the US will help Hyundai make quick inroads into the EV market in the US, where it is also spending $300 million to add an EV production line to its manufacturing plant in Alabama.

The Alabama factory will produce the Electrified GV70, the latest model under its standalone premium brand Genesis and a hybrid version of the Santa Fe SUV from later this year.

Last year, both Hyundai Motor and Kia sold a total of 6.66 million EVs globally, up 111% from the previous year, according to the Korea Automobile Manufacturers Association (KAMA). They ranked fifth in terms of EV sales.

Envisioning a top-tier eco-friendly automaker, the Hyundai Motor Group aims to boost its annual global battery EV sales to 1.87 million units by 2030 for a global EV market share of 7%.

Write to Hyung-Kyu Kim at khk@hankyung.com
Yeonhee Kim edited this article.