Hyundai Is Tesla’s Latest Challenger With Plans For $5.5 Billion U.S. EV, Battery Plant

The first dedicated electric vehicle and battery plant in the U.S. will be built by Hyundai Motor Group, which will join General Motor, Ford, Volkswagen and other global auto giants that want to dethrone Tesla as the world's top EV brand.

The factory is planned to be built on a 2,923-acre site in Bryan County, Georgia, near the port city of Savanah, and will begin production in the first half of 2025. When fully operational, the facility will have the capacity to produce 300,000 vehicles annually and should employ more than 8,000 workers.

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 sustainable living. The facility will be the first dedicated EV plant in North America.

GM and Ford are both pouring billions of dollars into new and expanded factories to make electric vehicles as they face pressure to reduce climate- damaging emissions from cars and trucks. The company wants to be among the top three EV sellers in the U.S. by 2026 and boost its sales of battery-powered vehicles to over 3 million annually by the year 2030. About 75% of electric vehicles sold in the U.S. last year were sold byTesla.

Rivian, a startup that makes electric vehicles in Georgia, announced plans late last year to build a $5 billion facility in Morgan and Walton Counties, east of Atlanta.

On the same day that President Joe Biden began his first official visit to strengthen ties with South Korea, news came that he was pushing for a dramatic increase in U.S. production and sales of electric vehicles to cut carbon emissions and increase domestic manufacturing.

Chung attended a signing ceremony with Georgia Governor Brian Kemp. The company will provide more information about battery production in Georgia at a later date. It is possible that battery packs made there could be used to make electric vehicles in West Point, Georgia.

On Friday, shares of the company rose 2.5% to close at 186,500 won.