Ioniq 5 production begins early at Hyundai's $5.5 billion Georgia facility

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Ioniq 5 production begins early at Hyundai's $5.5 billion Georgia facility

Published: 08 Oct. 2024, 10:50

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Motor's EV manufacturing facility in Georgia [HYUNDAI MOTOR]

Hyundai Motor began producing Ioniq 5s at its $5.5 billion Georgia plant, around six months ahead of its initial schedule in a rush move to qualify for federal EV incentives that reward domestic production.

Hyundai confirmed that the production is a pilot operation, with full-scale production slated for later this month. The official opening celebration is scheduled for the first quarter of 2025.

Hyundai's factory in Georgia held an “employee-focused celebration” in early October.

The Korean carmaker began construction of the EV facility in October 2022, with a $5.5 billion investment, the largest economic development project the state has ever seen. Hyundai had previously stated that production would start in the first quarter of 2025.

The expedited production comes as the Korean automaker hopes to make its EVs qualify for tax credits under the Inflation Reduction Act, which passed in 2022 and offers up to $7,500 to EVs assembled in North America.

Ioniq 5s are the first EVs to be produced at the plant, with around seven different models expected to be produced.

Hyundai Motor recently decided to upgrade the facility to include a hybrid production line amid growing demand for hybrid vehicles instead of pure EVs.

The Georgia plant will have an annual production capacity of 300,000 units, which can later be increased to 500,000.

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