South Korean firm to build EV parts facility in Tennessee

SEOUL, Aug. 3 (UPI) -- South Korea's Hanon Systems announced it will build a new manufacturing facility in Tennessee that will create 600 jobs.

The company is slated to invest $170 million in a production facility to supply thermal solutions to electric vehicle makers with American manufacturing bases.

Hanon said Wednesday its product line would include heating ventilation, powertrain cooling, compressors, electronics, air conditioning, fluid pressure and fluid transport.

Earlier in the year, Hanon announced that it was investing $40 million to build a plant in Georgia that would produce parts used in electric vehicles by Hyundai, Ford and other global automakers.

"Tennessee is at the center of the automotive industry, and Hanon Systems' decision to invest nearly $170 million in Loudon County is a testament to Tennessee's unmatched business climate, thriving economy and highly skilled workforce," Tennessee Gov. Bill Lee said in a statement.

"I thank Hanon Systems for creating 600 new jobs that will create tremendous opportunity for Tennesseans across the region," he said.

Tennessee has been attracting big investments from manufacturers of automobiles and components, including Korean ones.

South Korean battery maker LG Energy Solution announced in 2021 that it would partner with General Motors to build a $2.3 billion battery plant in Tennessee.

The two companies also announced last year another $3.2 billion project for a cathode production facility to be built there.

Korean companies are trying to build new facilities in the United States in order to qualify for the country's tax credits, which went into effect as the result of the Inflation Reduction Act passed last year.

Under the guidelines of the IRA, electric cars must be assembled in North America to qualify for tax credits.