Hyundai Motor Group breaks ground in Georgia for electric vehicle factory

Industry

Published: 26 Oct. 2022, 10:09 Updated: 26 Oct. 2022, 18:51

Hyundai Motor Group breaks ground in Georgia for electric vehicle factory

Representatives from Hyundai Motor Group and the Georgia state government, including Executive Chair Euisun Chung, fifth from left, and Georgia Gov. Brian Kemp, sixth from left, hold shovels during a groundbreaking ceremony for the company's EV factory in Georgia Tuesday. [HYUNDAI MOTOR]

Ground was broken Tuesday for Hyundai Motor Group’s $5.54 billion electric vehicle (EV) factory in Georgia.

The facility will be the largest Korean automaker’s first U.S. plant dedicated to making EVs. The groundbreaking ceremony was held Tuesday in Georgia, about six months earlier than originally anticipated as the U.S. passed the Inflation Reduction Act.

The Hyundai Motor Group Metaplant America (Hmgma), which will be built on a 2,923-acre site in Bryan County, Georgia, is scheduled to start mass production in the first half of 2025, with an annual capacity of 300,000. Hyundai Motor, Genesis and Kia EVs will be manufactured at the factory.

Hyundai Motor global chief operating officer Jose Munoz was reported to have said that the plant could begin production at the end of 2024 at the earliest and capacity could be expanded to 500,000.

Hyundai believes the plant's location is geographically beneficial as it is located near Hyundai and Kia's already existing plants. It is around 400 kilometers (250 miles) from a Kia factory, also in Georgia, and 510 kilometers from a Hyundai Motor plant in Alabama.

The new factory is expected to create about 8,100 new jobs, the company said. Georgia officials say it’s the largest economic development project the state has ever seen.

"Our partnership with Hyundai Motor Group and the groundbreaking of this innovative facility exemplifies that unprecedented success," said Georgia Gov. Brian Kemp during the groundbreaking ceremony. "With a long-term commitment to improving lives and livelihoods, we look forward to continuing this partnership and seeing its impact on both this community and our state as a whole."

The automaker is also planning to build a battery cell plant near Hmgma. Hyundai is considering establishing a joint venture with a global battery maker.

A bird's-eye view of Hyundai's Georgia plant [HYUNDAI MOTOR]

Hyundai and Kia aim to sell a total of 3.23 million EVs globally in 2030, to obtain a combined market share of 12 percent. In the United States alone, they wish to sell 840,000 EVs.

"Today, our EVs are recognized as best in class, and with this partnership, we are determined to be the global leader in electrification, safety quality and sustainability," said Hyundai Motor Group Executive Chair Euisun Chung. "We will continue to evolve beyond an automaker to the world’s leading mobility solutions provider."

Hyundai Motor and Kia’s EV sales in the United States surged 212 percent to 47,095 this year through the end of September. Of them, around 40 percent were Ioniq 5s while 37 percent were EV6s.

EVs accounted for 4.3 percent of their total sales this year, compared to 1.3 percent in the same period last year.

Hyundai Motor also plans to build an EV-dedicated factory in Ulsan, the first of its kind in Korea, with the goal of starting mass production in 2025. Kia will construct an EV plant for purpose-built vehicles in Hwaseong, Gyeonggi.

The U.S. and Korean plants will boost Hyundai and Kia's EV production capacity to 1.44 million.

Hyundai Motor plans to introduce 18 EV models through 2030, including those from its luxury Genesis brand. Ioniq 6 was released in July with Ioniq 7 scheduled for next year.

Kia will release a total of 13 EV models during the same period.

BY SARAH CHEA [chea.sarah@joongang.co.kr]