Hyundai, the South Korean automotive giant, is on a fast track to commence operations at its newly constructed Georgia factory, driven by the allure of significant tax incentives under the Inflation Reduction Act (IRA). The $7.6 billion facility in Georgia holds the key to unlocking federal Electric Vehicle (EV) incentives aimed at bolstering domestic EV production.
Jose Munoz, President and Global Chief Operating Officer of Hyundai, recently announced the company’s intensified efforts to kickstart the production of electric vehicles and batteries at their Georgia plant. Munoz made this revelation in Atlanta after formalizing a partnership with Georgia Tech, as reported by El Pais.
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Hyundai, which also oversees the production of Kia and Genesis vehicles, had previously voiced concerns over the perceived inequity of the Inflation Reduction Act (IRA), particularly for companies importing electric vehicles or batteries from regions outside North America. The IRA extends a tax credit of up to $7,500 to electric vehicle purchasers, but with the crucial caveat that the vehicles must be manufactured within North America and equipped with domestically-produced batteries.
Under the pressure of the IRA’s stipulations, Hyundai is now expediting the production of batteries and electric vehicles within the United States. The company aims to commence operations at its Georgia plant sometime in 2024, a development that hinges on the rapid progress of construction. Munoz underscored Hyundai’s unwavering commitment to the all-electric vehicle segment.
Munoz elaborated on their approach, stating, “What we decided is to double down. We try to accelerate as much as possible, the project. And we are confident that the original date of January 2025 would probably be pulled ahead maybe three months or so. If we can, even more.”
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Furthermore, Hyundai’s battery manufacturing partner, LG Energy Solution, recently increased its investment in the Georgia facility. Munoz highlighted that this expanded investment would enable the company to manufacture a greater quantity of batteries in Ellabella than initially planned, effectively ensuring a sufficient battery supply for the 300,000 vehicles Hyundai intends to assemble at the site.
Munoz emphasized the desire for complete compliance with the IRA, stating, “We would like to ensure that the sourcing of the batteries is 100% USA in order to comply with the IRA.” He also noted that the heightened investment would enable Hyundai and LG to incorporate cutting-edge technology in their battery production processes.
