Hyundai Motor Group signs $5.5 billion Georgia EV factory deal

Hyundai Motor Group will invest $5.54 billion to build an electric vehicle (EV) factory and a battery-cell plant in Georgia, the company said Saturday.

Hyundai Motor CEO Jang Jae-hoon, right, and Georgia Governor Brian Kemp shake hands after signing an agreement for a $5.54 billion in an electric vehicle factory and battery-cell facility in Bryan County, Georgia. [HYUNDAI MOTOR]

Hyundai Motor Group will invest $5.54 billion to build an electric vehicle (EV) factory and a battery-cell plant in Georgia, the company said Saturday.

Chang Jae-hoon, Hyundai Motor CEO, and Georgia Governor Brian Kemp signed an agreement Friday at the site in Georgia where the plant will be built.

The announcement came Saturday in Korea, the second day of U.S. President Joe Biden's three-day trip to Korea. Biden is scheduled to meet Hyundai Motor Group Chairman Euisun Chung Sunday.

The factory will be the Korean company's first EV-dedicated facility in the United States.

"As one of the world's most successful and advanced mobility leaders, we are incredibly proud to share our plan to open our first dedicated full EV and battery manufacturing facilities in the United States," Chung said. "The United States has always held an important place in the company's global strategy, and we are excited to partner with the State of Georgia to achieve our shared goal of electrified mobility and sustainability in the United States."

The new facility will be built on a 2,923-acre site in Bryan County, Georgia, around 400 kilometers (250 miles) from an existing Kia factory. The companies will also build a battery-cell plant near the new factory, the company said.

Groundbreaking is scheduled for early 2023, with the goal of starting production in the first half of 2025. Annual capacity will be around 300,000 units.

The new factory is expected to create about 8,100 new jobs, the company said.

"The future of transportation is in the Peach State as we announce the largest project in our state's history — delivering high-quality jobs on the leading edge of mobility to hardworking Georgians," Kemp said, referring the state's nickname. "Not only are we thrilled to welcome Hyundai to Georgia's coastal region, but it's incredible that within a year of Georgia's investment in the Bryan County Megasite, we are locating a world-class project here with a company with great Georgia history."

The investment is in line with the company's plan of investing a total of $7.4 billion in the United States through 2025. The country is the third largest EV market after China and Germany.

Hyundai and Kia aim to sell a total of 3.23 million EVs globally in 2030, gaining a combined market share of 12 percent.

Hyundai Motor plans to introduce 18 EV models through 2030, including those from its luxury Genesis brand. Ioniq 6 is expected to be released this year, with Ioniq 7 next year.

Kia will release a total of 13 EV models during the same period.

Hyundai Motor owns about 33.9 percent of Kia.

BY SARAH CHEA [chea.sarah@joongang.co.kr]