Hyundai Motor Group (HMG) entered into an agreement with the State of Georgia to build its first dedicated full electric vehicle and battery manufacturing facilities in the US. The new EV plant and battery manufacturing facilities represent an investment of approximately US$5.54 billion. Non-affiliated Hyundai Motor Group suppliers will invest approximately another $1 billion in the project.
The new facility will break ground in early 2023 and is expected to begin commercial production in the first half of 2025 with an annual capacity of 300,000 units. The battery manufacturing facility will be established through a strategic partnership, the details of which will be disclosed later.
The Group plans to produce wide range of full electric vehicles for US customers at the new Georgia EV plant. Details of production models will be shared at later dates. The local EV production will increase US consumer accessibility to the Group’s EVs. Through the battery manufacturing facility, the Group also aims to establish a stable supply chain and build a healthy EV ecosystem in the US.
The new plant will feature a highly connected, automated, and flexible manufacturing system, which organically connects all elements of the EV ecosystem to realize customer value.
The Group plans to implement many of its advanced intelligent manufacturing technologies that are currently under test at the Group’s innovation hub, the Hyundai Motor Group Innovation Center in Singapore (HMGICS).
All processes of production—order collection, procurement, logistics and production—will be optimized utilizing AI and data. The innovative manufacturing system will also help create a human-centered work environment with robots assisting human workers.
As part of the Group’s commitment to sustainability, the plant will mainly rely on renewable energy sources to power the facility and use emission-reduction technologies to meet the RE100 requirements.
The EV and battery manufacturing plant will be located on a dedicated 2,923-acre site in Bryan County, Georgia (the Bryan County Megasite), with immediate access to I-95 and I-16 highways which creates easy access to 250 major metro areas. It is less than 50 kilometers (31 miles) from the Port of Savannah, the single-largest and fastest-growing container terminal in the US with two Class I rail facilities on-site. Rail service to the site is provided by Georgia Central Railway, a short line railway that connects to CSX in Savannah and Norfolk Southern near Macon in Middle Georgia.
West Point, Georgia is already home to the Group’s Kia manufacturing hub in the US.
The megasite was purchased jointly by the Savannah Harbor-Interstate 16 Corridor Joint Development Authority (JDA) and the state less than a year ago.
Hyundai Motor Group selected Georgia as the Group’s EV and battery production site due to a range of favorable business conditions, including speed-to-market, talented workforce, as well as existing network of the Group affiliates and suppliers.
The Group’s US investment decision will support its goal of becoming a leader in electric mobility in the US market. It also highlights the Group’s commitment to sustainability through electrification and to supporting the economies where it operates. The project is expected to create about 8,100 new jobs.
Georgia is the Southeastern leader for EV registration per 1,000 registered automobiles. To support these drivers, Georgia is constantly developing access to publicly available EV charging stations and already offers more outlets per capita than anywhere else in the Southeast. The Group’s new investment will help accelerate the state’s sustainable shift to electrification.
The EV plant investment comes as a part of the Group’s 2021 announcement to invest US$7.4 billion by 2025 to foster future mobility in the U.S, including production of EVs and offering smart mobility solutions.
The Group is accelerating its electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030. To realize this goal, the Group plans to establish a global EV production network that will ensure a stable supply of EVs around the globe.
We decided to build our first dedicated EV plant in the US because America embraces change and drives innovation. This new EV plant is the future of our business, and it will help us meet the growing demands of our US customers who want leading edge design, safe, zero-emissions vehicles now and in the future.—Jaehoon Chang, President and CEO of Hyundai Motor
With the additional EV and battery production capabilities in the US, the Group aims to become one of the top three EV providers in the US by 2026. The Group plans to lead the EV market not just in sales, but also in terms of design, technologies, and mobility solutions optimized for electric mobility era.