# Hyundai breaks ground on $5.5 billion U.S. EV, battery plant Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Hyundai breaks ground on $5.54B EV plant in Georgia Meta Description: Hyundai Motor Co starts construction on massive electric vehicle and battery plant in the United States, investing in state's largest project with 300,000 URL: https://financedigest.com/hyundai-breaks-ground-on-5-5-billion-u-s-ev-battery-planthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-25t100201z1lynxmpei9o0certroptp4hyundai-usa-electric-1736814976121-compressed.jpg) By David Shepardson ELLABELL, Ga. (Reuters) – Hyundai Motor Co broke ground on a $5.54 billion electric vehicle (EV) and battery plant in the United States on Tuesday, as South Korea’s biggest automaker grapples with an uncertain outlook for its EV sales in its top market. The investment is the largest in the state’s history and the [latest in a string of EV and battery announcements](https://www.financedigest.com/incentive-fm-group-announces-latest-strategic-me-acquisition.html "INCENTIVE FM GROUP ANNOUNCES LATEST STRATEGIC M&E ACQUISITION") in Georgia. Hyundai plans to begin commercial [production in the first half](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") of 2025 in the massive plant in Bryan county about 30 miles west of Savannah, that will have an annual capacity of 300,000 units. Georgia Governor Brian Kemp, a Republican, and the state’s two U.S. senators, Jon Ossoff and Raphael Warnock, both Democrats, attended the event and all praised the [investment that will eventually add 8,100 jobs](https://www.financedigest.com/over-8500-new-jobs-created-in-financial-services-from-foreign-direct-investment-in-2016-17.html "Over 8,500 New Jobs Created In Financial Services From Foreign Direct Investment In 2016-17"). Kemp and Warnock are up for re-election [next month](https://www.financedigest.com/prince-harry-and-meghan-to-visit-britain-next-month.html "Prince Harry and Meghan to visit Britain next month"). Kemp said since 2020 Georgia has announced 30 [electric mobility-related projects that will ultimately result in $13 billion in investment](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") and nearly 19,000 jobs. In December, EV maker Rivian Automotive Inc announced it would [invest $5 billion](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") in the state. The groundbreaking comes [amid anger from Korea and the European Union](https://www.financedigest.com/royal-mail-says-uk-business-losing-one-million-pounds-a-day-amid-union-clash.html "Royal Mail says UK business losing one million pounds a day amid union clash") over U.S. [tax policy on electric vehicles](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S"). The Inflation Reduction Act [signed by President Joe Biden](https://www.financedigest.com/biden-signs-bill-to-boost-u-s-chips-compete-with-china.html "Biden signs bill to boost U.S. chips, compete with China") in August requires EVs to be assembled in North America in order to qualify for U.S. [tax credits](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official"). Hyundai and its affiliate Kia Corp as well as major European automakers were excluded from the EV subsidies as they do not yet make the vehicles there. Korea’s ambassador to the United States, Taeyong Cho, told [reporters there were ongoing discussions about the tax issue between the Biden administration and Korean government](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report.html "European governments spend half a trillion euros on energy crisis – report"). He said it was unclear if the law would [need to be changed](https://www.financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industry.html "A mindset change is needed in the financial services industry") by the U.S. Congress or if it could be addressed through the regulatory process. The law made about 70% of EVs immediately ineligible for the [tax credits](https://www.financedigest.com/automakers-scramble-to-decode-new-u-s-ev-tax-credits.html "Automakers scramble to decode new U.S. EV tax credits") of up to $7,500 per vehicle. Sales of the Hyundai Ioniq 5 crossover SUV in the United [States slumped around 14% in September from the previous month](https://www.financedigest.com/inflation-in-key-german-states-eases-for-second-month.html "Inflation in key German states eases for second month"), hit by the new U.S. law. Concern over Hyundai’s U.S. EV [sales under the new regulations was cited by analysts when the company announced quarterly](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite") results on Monday. Biden offered assurance in a letter to [South Korean President](https://www.financedigest.com/south-korea-has-not-supplied-lethal-weapons-to-ukraine-president-says.html "South Korea has not supplied lethal weapons to Ukraine, president says") Yoon Suk-yeol, who had asked the U.S. president [last month](https://www.financedigest.com/monkeypox-emergency-could-last-months-with-window-closing-to-stop-spread-experts-say.html "Monkeypox emergency could last months, with window closing to stop spread, experts say") for help to allay Seoul’s concerns that the new U.S. rules would hurt [South Korea’s](https://www.financedigest.com/north-korea-fires-artillery-into-sea-as-south-korea-and-u-s-pledge-cooperation.html "North Korea fires artillery into sea as South Korea and U.S. pledge cooperation") automakers. As a result of the August law, only about 20 EVs qualify for [subsidies under the new rules](https://www.financedigest.com/new-u-s-rules-on-ev-subsidies-slam-hyundai-kias-dreams.html "New U.S. rules on EV subsidies slam Hyundai, Kia’s dreams"), among them models from Ford Motor Co and BMW. (Reporting by David Shepardson in Ellabell, Ga.; Editing by Muralikumar Anantharaman and Matthew Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---