[Asia Economy Reporter Jeong Hyunjin] Hyundai Motor Company is reportedly set to announce plans to establish an electric vehicle factory worth $7 billion (approximately 9 trillion KRW) in the U.S. state of Georgia during U.S. President Joe Biden's visit to South Korea scheduled for June 20-22.
On the 12th (local time), the Associated Press (AP) cited sources and reported that this announcement is expected to be made locally in Georgia on the 20th. According to the report, the new factory site is likely to be Ellabell in Bryan County near Savannah in eastern Georgia, and the investment is expected to create 8,500 jobs locally.
This report followed coverage by the Georgia-based media outlet Atlanta Journal-Constitution (AJC). Citing multiple sources, AJC reported that Hyundai and the Georgia state government will simultaneously announce Hyundai’s electric vehicle factory establishment plans on the 20th. It was explained that Georgia Governor Brian Kemp will officially announce this in Savannah, the planned factory site, during President Biden’s visit to South Korea. Anonymous sources told AJC that Hyundai and the Georgia government have already completed negotiations, but it is unclear what incentives Georgia has offered. The factory is expected to produce vehicles and batteries under the Hyundai and Kia brands.
Hyundai Motor Group has been operating the Hyundai Alabama plant since 2006 and the Kia Georgia plant since 2009, and has established a parts supply chain in Georgia. Georgia attracted electric vehicle manufacturer Rivian’s factory in December last year, and SK Innovation is also building a battery plant in Commerce, Georgia.
Earlier this month, major foreign media reported that Hyundai was in talks with state authorities to build a new electric vehicle production plant in Georgia. At that time, sources said, "Once the new plant in Georgia is completed, Hyundai and Kia will launch dedicated electric vehicles and sports utility vehicles (SUVs) aimed at the U.S. market, such as the Ioniq 7 and EV9."
However, despite these local media reports, Hyundai has taken a cautious stance, stating that no decision has been made regarding the timing of the announcement or the location of the U.S. factory investment. A Hyundai official said, "Nothing has been decided regarding the establishment of the Georgia electric vehicle factory."
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