Hyundai is investing heavily in US electric vehicle sales. The automaker has signed a deal with Georgia to build its first dedicated EV plant in the US. The 2,923-acre plant near Savannah will make cars and batteries when production is expected to begin in the first half of 2025. Construction will begin in early 2023. The company expects to produce 300,000 EVs per year at the facility, covering a “wide range.” of models.
Several factors led to the choice of location. Hyundai pointed to “favourable business conditions”, including rapid market access, a large talent pool and an existing network that includes Kia’s main manufacturing hub and suppliers. Unnamed incentives play a role, according to Savannah Morning News. However, it is also an excellent place for transportation. Located less than 31 miles from the Port of Savannah, the largest container transit point in the US, the facility features two rail facilities. Add to that the proximity to two major highways (I-95 and I-16) and it will be easy for Hyundai to receive supplies and ship finished EVs.
Not surprisingly, both Georgia and Hyundai cite economic benefits. They estimate the investment is worth $5.54 billion, with Governor Brian Kemp claiming it will be the “largest project” in state history. Hyundai further claimed the factory would create 8,100 jobs, although it’s not clear how many of those are full-time, permanent positions.
The annual production level will not be as strong as Hyundai’s conventional production. The company’s factory in Montgomery, Alabama, can produce up to 399,500 vehicles per year. However, this represents a great commitment to EVs and suggests Hyundai is racing to compete with Tesla, Rivian, Volkswagen and other brands expanding their electric car production in the country.
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