Hyundai Motor shares uplifted on news of $7 bn EV plant project in US

(Updated with Hyundai Motor comment)

Shares of Hyundai Motor rose Friday upon news that South Korea’s household car conglomerate would pledge $7 billion investment in the United States to add EV production facility in Georgia that houses Kia Corp. car plant, timed with U.S. President Joe Biden’s visit to Seoul May 20-21.

Hyundai Motor disclosed it was discussing with the U.S. federal government on EV factory project, but has yet to decide on the scale and time.

Hyundai Motor shares rose 3 percent to 186,000 won ($144.89) and Kia 0.1 percent to 86,400 won by 1:00 p.m. Friday.

The carmaker was responding to foreign media reports on $7 billion Georgia project.

The new plant is said to be built in Bryan County near the east of Savannah. Georgia Department of Economic Development acquired a site on 2,274 acres there for $61 million in May last year.

Reuters first reported that the Korean motor group and Georgia state officials have held meetings to discuss a new car plant in the state to churn out EVs based on its proprietary EV-dedicated platform E-GMP. The new plant will produce all-electric SUV Hyundai Ioniq 7 and Kia EV9 targeting the North American market, it added.

Hyundai Motor Group set up the Alabama plant for Hyundai Motor in 2006 and the Georgia plant for Kia in 2009. Kia’s Georgia plant currently produces only conventional combustion engine models. The new Georgia EV facility could be responsible for new EVs of Hyundai and Kia.

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