Hyundai Motor Group announced plans to invest more than $5.5 billion to construct its first full-electric vehicle (EV) and battery manufacturing facilities in the U.S., with the goal to build a wide range of fully electric vehicles for U.S. customers.

The new facility, to be located in Bryan County Georgia, is expected to have an annual capacity of 300,000 units. The battery manufacturing facility will be created through a strategic partnership, with details to be disclosed at a later stage.

Hyundai Motor Group Executive Chair Euisun Chung said:

“We are incredibly proud to share our plan to open our first dedicated full EV and battery manufacturing facilities in the U.S. The U.S. has always held an important place in the Group’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 U.S.”  

The plant will utilize an automated manufacturing system, which connects all elements of the EV ecosystem. All processes of production of the Georgia facility will also be optimized using AI and data. Additionally, the plant will rely mainly on renewable energy sources to power the facility and use emission-reduction technologies to meet the RE100 requirements. The RE100 initiative brings together large businesses committed to 100% renewable energy.

The launch marks the latest in a series of major investment announcements in the U.S. aimed at dramatically ramping EV and battery capacity in the country and follows an executive order by President Joe Biden last year mandating that zero-emissions vehicles make up half of new vehicle sales in the U.S. by 2030. Automotive leaders GM, Ford, and Stellantis have each announced significant investment plans in EV capacity over the past few months, and last month, gigafactory company Statevolt announced plans for a $4 billion, 54 GW California-based battery plant.

Hyundai stated that with the additional EV and battery production capabilities, the company aims to become of the top three EV providers in the U.S. by 2026.

Jaehoon Chang, President, and CEO of Hyundai Motor, said:

“We decided to build our first dedicated EV plant in the U.S. because America embraces change and drives innovation. This new EV plant is the future of our business, and It will help us meet the growing demands of our US customers who want leading edge design, safe, zero-emissions vehicles now and in the future.”

Groundbreaking of the new facility is expected in early 2023, with commercial production planned for the first half of 2025.

The post Hyundai Investing Over $5 Billion in Bid to Become a Top-3 U.S. EV Company appeared first on ESG Today.