22.9 C
Brunei
Wednesday, November 30, 2022
22.9 C
Brunei
Wednesday, November 30, 2022
More
    - Advertisement -

    Hyundai to break ground on USD5.5B Georgia plant this month

    CNA – South Korea’s Hyundai Motor Co said on Friday it will break ground this month on a USD5.5 billion electric vehicle (EV)and battery plant in the United States (US).

    Hyundai plans to begin commercial production in the first half of 2025 with an annual capacity of 300,000 units.

    The October 25 groundbreaking for the Hyundai Group “metaplant” in Savannah, Georgia is part of the Hyundai Group’s “commitment of USD10 billion by 2025 to foster future mobility in the United States (US), including production of EVs,” the company said.

    The groundbreaking comes amid anger from Korea and the European Union over US EV tax policy.

    The Inflation Reduction Act, signed by Biden in August, requires EVs assembled in North America to qualify for tax credits in the US, but excluded Hyundai and its affiliate Kia Corp from EV subsidies, as they do not yet make the vehicles there, along with major European automakers.

    The law made about 70 per cent of EVs immediately ineligible for the tax credits of up to USD7,500 per vehicle.

    Biden has expressed willingness to continue talks with South Korea over recent US legislation that denies subsidies to most foreign makers of EVs, South Korea said earlier this month.

    Biden has also repeatedly praised investments by major foreign automakers to build electric vehicles and battery plants in the US.

    Biden gave the assurance in a letter to South Korean President Yoon Suk-yeol, who had asked the US president last month for help to allay Seoul’s concerns that the new US rules would hurt South Korea’s automakers, the media reported.

    - Advertisement -
    - Advertisement -
    spot_img

    Latest article

    - Advertisement -
    spot_img