Hyundai Mobis to inject $1.3 bn to build EV parts plant in US in response to IRA

Hyundai Mobis Co. will establish a plant dedicated to electric vehicle components in United States with $1.3 billion investment through 2030 in line with South Korea’s Hyundai Motor Group’s acceleration of electrification in the U.S. after the Inflation Reduction Act.

In its disclosure on Wednesday, Hyundai Mobis said it will put up $280 million for its North American operation Mobis America Inc. (MAI), and the rest of the investment will be made according to MAI’s liquidity and leverage levels.

The latest decision is to expand business in the North American market in cooperation with Hyundai Motor and Kia, according to the disclosure.

Hyundai Mobis’s plan is part of the group’s investment pledge for the U.S. Hyundai Motor Group in May announced to invest a total of $5.5 billion in Georgia, the U.S. to build an EV-dedicated smart manufacturing facility and battery cell factory to have an EV production base.

The South Korean auto conglomerate is driving harder towards its EV production goal under aggressive electrification roadmap in the U.S. under IRA that restricted tax credits to EVs manufactured and sourced in the U.S.

Hyundai Mobis shares were trading 1.23 percent lower at 200,000 won ($142.48) by midday Thursday.

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