Korea’s Hyundai Motor Group said it plans to invest $7.4 billion in the United States by 2025 to produce electric vehicles, develop its production facilities, and expand its investment in smart mobility solutions.
Hyundai’s statements come at a time when the administration of US President “Joe Biden” confirmed the trend towards electric cars and the replacement of 650,000 vehicles in its government vehicle fleet with American-made electric vehicles.
In January, Biden signed an executive order imposing tougher laws on government procurement practices to increase the trend toward purchasing US-origin products to strengthen domestic industry and create markets for new technologies. Analysts said that the investment Hyundai would make was important to take advantage of the Biden administration’s policies on electric vehicles to obtain tax incentives and benefits.
Hyundai Motor Group will start producing electric vehicles at its American plant in 2022, noting that Kia, a subsidiary of the group, also plans to manufacture electric cars in the United States, and both companies have factories to manufacture their cars there, in Alabama for Hyundai and Georgia for Kia.
The moves come as the electric battery supplier for Hyundai, SK Innovation, is building new plants in the United States in order to supply its products to Volkswagen and Ford and plans to expand its production capacity in America.
Hyundai said it will work with the US government and other partners to build hydrogen filling stations and roll out its hydrogen-fuelled NEXO four-wheel drive vehicles. Hyundai is also investing in robotics, civilian air mobility and autonomous technologies.