Hyundai gets $1.35B in export financing for Georgia EV facility

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Hyundai gets $1.35B in export financing for Georgia EV facility

Published: 16 Oct. 2024, 15:07

SARAH CHEA
chea.sarah@joongang.co.kr

Audio report: written by reporters, read by AI

Hyundai Motor's $5.5 EV manufacturing facility in Georgia. [YONHAP]

The Korea Trade Insurance Corporation granted $1.35 billion in export financing to Hyundai Motor's $5.5 billion EV manufacturing facility in Georgia, which began partial operation in early October.

Export financing provides credits to corporations to raise long-term funds required for overseas investment and construction at low interest rates.

The financing was decided to help Hyundai "strengthen its global competitiveness by offering financial support to its EV manufacturing facility in North America, one of the biggest auto markets in the world," the state-run export credit agency said Wednesday.

Hyundai's EV factory in Bryan County, Georgia, is the automaker's first EV-dedicated manufacturing plant in the United States. It recently started partial production, around six months ahead of schedule, in order to rapidly qualify for the U.S. government tax credits of up to $7,500 for EVs assembled in North America.

The Georgia plant is planned to have an annual production capacity of 300,000 units.

The Korean government is rushing to expand financial support to firms that handle the businesses of future cars, one of the six areas that the country has picked as key innovative fields along with semiconductors, displays, batteries, biopharmaceuticals and robots.

Last year, the Korea Trade Insurance Corporation offered $940 million in financial support to Hyundai Mobis to build EV parts facilities in Alabama and Georgia.

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