Hyundai Motor Group (HMG) said it was speeding construction of its new electric vehicle (EV) plant in the US to benefit early from tax credits and incentives available under the Inflation Reduction Act (IRA).
The government is offering up to US$7,500 in tax credits to buyers of EVs produced in North America under the act which was signed off by the Biden administration last year.
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The maker of Hyundai, Kia and Genesis began construction of a dedicated EV plant in Georgia last October with planned capacity for 300,000 vehicles per year.
Completion was originally scheduled for the beginning of 2025 but the automaker is keen to establish a strong earlier presence in the region’s fast-growing EV market.
Jose Munoz, CEO of Hyundai and Genesis North America, announced the faster track plans during a visit to Georgia Institute of Technology in Atlanta this week to sign a technical partnership agreement for hydrogen vehicles.
He said: “We will try to accelerate the project as much as possible and we are confident that the original date of January 2025 will be pulled forward by three months or so. Even more if we can.”
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By GlobalDataEarlier this month HMG and LG Energy Solution said the total estimated cost of their 30 gigawatt/hour (GWh) EV battery joint venture plant in Savannah, also in Georgia, had soared 40% to US$7.6bn from US$5.5bn due to rising construction costs, after they brought forward completion into the second half of 2024 from 2025 to meet HMG delivery schedules.
Hyundai and Kia are also adding EV production lines at existing plants in Alabama and Georgia, respectively.
Earlier this year Alabama began production of the Genesis GV70 electric SUV.
