The Georgia state government announced on the 26th (local time) that there will be no additional incentives for the electric vehicle battery joint factory that Hyundai Motor Group and LG Energy Solution plan to build in the United States with an investment of 5.7 trillion won.
Garrison Douglas, spokesperson for Georgia Governor Brian Kemp's office, said in an interview with the AP News on the same day, "This battery factory is included in the entire Hyundai (electric vehicle) plant facilities, so there will be no additional incentives (tax benefits)."
He added that the $4.3 billion (about 5.7 trillion won) to be invested in this battery factory is part of the already confirmed $5.5 billion (about 7.2 trillion won) investment. Earlier, the Georgia state government promised incentives worth $1.8 billion (about 2.3 trillion won) for Hyundai's electric vehicle-only plant in Georgia in July last year.
John Ossoff, a federal senator (Democrat) from the region, also stated in an online press conference and an AP interview on the morning of the same day that Hyundai Motor must wait for the tax credit under the Inflation Reduction Act (IRA) until it produces electric vehicles in the U.S. using U.S.-made batteries.
He added, "Hyundai must produce electric vehicles in Georgia for these vehicles to qualify for the IRA tax credit benefits." The U.S. IRA regulations provide tax benefits of up to $7,500 only for electric vehicles finally produced in the North American region.
Accordingly, Hyundai Motor Group is pushing to advance the completion and production date of the electric vehicle plant in Georgia from the original 2025 to the end of 2024.
Senator Ossoff also emphasized his visit to Korea last month, saying, "Last night, I spoke with LG Group Chairman Koo Kwang-mo and Hyundai Motor Group Chairman Chung Eui-sun to reaffirm the construction and investment in the battery factory."
Hyundai Motor Group and LG Energy Solution plan to build a battery cell production plant in Bryan County, Savannah, Georgia, USA, with an annual capacity of 300,000 pure electric vehicles, aiming to start operations in 2025. The new battery cell production plant is expected to be located near the Hyundai electric vehicle-only plant currently under construction in Georgia.
Jang Jae-hoon, President and CEO of Hyundai Motor Company (left), is taking a commemorative photo at the signing ceremony for the North American battery joint venture held on the 26th at the LG Energy Solution headquarters located in Yeouido, Yeongdeungpo-gu, Seoul. [Image source=Yonhap News]
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