Hyundai Motor breaks ground on Ga. EV plant

SEOUL, Oct. 27 (UPI) -- South Korea's Hyundai Motor broke ground on its U.S. plant for electric vehicles and batteries in Bryan County, Ga.

The Seoul-based automaker is expected to spend $5.54 billion to build the needed factories, where more than 8,100 workers are planned to help start rolling out the vehicles in 2025.

Hyundai Chairman Chung Eui-sun and Georgia Gov. Brian Kemp took part in Wednesday's groundbreaking.

"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," Chung said in a speech.

"With the Hyundai Motor Group Metaplant America, we will continue to evolve beyond an automaker to the world's leading mobility solutions provider," he said.

Hyundai has put forth a plan with a goal of selling 3.23 million electric cars annually by 2030.

Kemp welcomed Hyundai's investment.

"With more Georgians working than ever before, record jobs and investment coming to all parts of our state, and award-winning workforce development programs and infrastructure, the Peach State's economy is reaching new heights," he said.

"Our partnership with Hyundai Motor Group and the groundbreaking of this innovative facility exemplifies that unprecedented success. 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."

Observers point out that the Inflation Reduction Act, which was signed by U.S. President Joe Biden in August, prompted Hyundai to move fast in the U.S. market.

"Hyundai has had to hurry to avoid the negative impact of the IRA on its U.S. sales," Daelim University automotive Professor Kim Pil-soo told UPI News Korea.

"The company will likely try to get the facilities going as soon as possible in order to avoid the negative impact IRA might pose on its performance there," he said.

Under the guidelines of the IRA, vehicles must be assembled in North America to qualify for tax credits. This means that many of Hyundai's electric cars no longer qualify for tax credit as most of them are assembled in Korea.

The company is working to earn some breathing room, like negotiating for a grace period.